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Fortum sells Finnish power distribution grid for $3.5 billion

By Jussi Rosendahl HELSINKI (Reuters) - State-controlled Finnish utility Fortum <FUM1V.HE> has agreed to sell its local power distribution grid to a consortium of institutional investors led by First State Investments and Borealis Infrastructure for 2.55 billion euros ($3.5 billion). The deal is the latest in a series of regulated distribution network sales made by large energy firms wanting to cut debt and focus on their power generation businesses instead.

Canadian, Australian funds invest in Finland power grid

A consortium including Canadian and Australian funds has paid $3.51 billion for the Finnish electricity distribution business of Fortum, the Finnish company said on Thursday. The deal closed at 2.55 billion euros ($3.51 billion) and the transaction is to be completed in the first quarter of 2014, with the transfer of 320 employees. Fortum's power grid accounts for 20 percent of the country's electricity consumption. The buyer, Suomi Power Networks, is a consortium created for the occasion.

Fortum CEO says distribution unit attracts potential buyers

HELSINKI (Reuters) - Finnish utility Fortum's <FUM1V.HE> chief executive said its electricity distribution business was attracting interest from potential buyers, and shrugged off concerns that a foreign buyer would represent a risk to the country's power grid. The state-controlled company has been assessing its strategic options and sources said last week it has hired Citigroup <C.N> and Danske Bank <DANSKE.CO> to explore a 5 billion-euro (4.3 billion pounds) sale of the electricity distribution business in Finland and Sweden.
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