Consortium acquires Fortum Distribution AB
A consortium consisting of Borealis Infrastructure Management Inc., Third Swedish National Pension Fund (AP3), Folksam with subsidiaries and First Swedish National Pension Fund (AP1) (”The Consortium”) has today signed an agreement to acquire 100 % of the shares of Fortum Distribution AB, Fortum Corporation’s electricity distribution networks in Sweden.
– This is a rare investment opportunity that suits Folksam with subsidiaries particularly well, as we are a long term investor with long term obligations towards our customers. Also, the investment adds to our different asset portfolios, since it improves risk diversification and expected rate of return, says Folksam with subsidiries’ President and CEO Jens Henriksson.
Fortum Distribution is the second largest player in the electricity distribution market in Sweden. The company distributes electircity to 906.000 customers, representing a market share of approximately 17 per cent.
With the acquisition, Fortum Distribution AB will have new long term and stable owners. The Consortium will continue to develop the Swedish electricity grid in order to safeguard reliable and qualitative electricity distribution in the best interest of customers.
The ownership shares in the Consortium are: Borealis Infrastructure 50.0 per cent, AP3 20.0 per cent, Folksam with subsidiaries 17.5 per cent and AP1 12.5 per cent.
Completion of the transaction is expected during the second quarter of 2015. The acquisition is subject to customary regulatory approvals. Lenner & Partners acted as Folksam with subsidiaries’ advisor in this transaction.
For further inquiries, please contact:
Juha Hartomaa, Group Investor Relations Manager, Folksam with subsidiaries, phone +46 (0)708 31 65 26
OMERS Private Markets
OMERS Private Markets (Borealis Infrastructure and OMERS Private Equity) manages CAD$19.4 billion in equity capital on behalf of the OMERS pension plan. OPM invests globally in infrastructure and private equity assets. Investments are aimed at generating superior, risk-adjusted returns to help deliver strong and sustainable pensions to OMERS members. OPM’s diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services. OPM has offices in Toronto, New York, London and Sydney. OMERS is one of Canada’s largest pension funds with net assets of more than CAD$72 billion and an AAA credit rating. For more information, please visit www.borealis.ca or www.omers.com.
AP3
The Third Swedish National Pension Fund (AP3) is one of five buffer funds – known as AP funds – within the Swedish pension system. Together, the five funds hold around 13% of Sweden’s income pension system assets. AP3’s fund capital totaled SEK 288,332 million at 31 December 2014. The Fund paid SEK 5,120 to the Swedish Pensions Agency during the year to cover the deficit between pension contributions and liabilities. See www.ap3.se for further information about AP3’s mission, our asset management operations and our role as an institutional shareholder.
Folksam with subsidiaries
Folksam is a mutual company. We offer insurance and pension savings. Nearly one out of two Swedes are insured by Folksam and we are one of Sweden’s largest asset managers with more than SEK 350 billion under management. Our vision is for our customers to feel secure in a sustainable world. For more information, please visit www.folksam.se.
AP1
Första AP-fonden is one of five AP funds in the Swedish national income pension system. The capital reserves in the AP funds ensure that pension benefits can be paid even when disbursements from the pension system exceed contributions into it. Första AP-fonden has assets under management of SEK 284 billion (31 Dec. 2014) in a global portfolio comprising equities, fixed income securities, real estate, private equity funds and hedge funds. Första AP-fonden invests to achieve high and long-term sustainable return. More information about Första AP-fonden at ap1.se