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Fortum sells heat supply business in the Baltic States :: Dienas Bizness

The Finnish energy group Fortum has completed the sale of the heat supply business in the Baltic States to the Swiss investment company Partners Group, Fortum said in a statement.

It says the final sales amount is 710 million euros.

In March, when the planned deal was announced, an initial agreement of EUR 800 million was reached.

In Latvia, Fortum provided heating in Daugavpils and Jelgava, in Estonia in Tartu and Pärnu, and in Lithuania in Klaipeda.

Last year, Fortum announced that it was considering the possible sale of the heat supply business in the Baltic States.

In the Baltics, Fortum generated 1.4 terawatt hours of heat and 0.6 terawatt hours of electricity last year and earned a profit before interest, taxes, depreciation and amortization (EBITDA) of 54 million euros.

Last September, Andris Vanags, Chairman of the Board of Fortum Latvia, told LETA that Fortum’s infrastructure in Latvia is not one that could be moved or taken to another country, so customers in Jelgava and Daugavpils, where Fortum operates, should not worry about it. that the investor in the service provider would change investor.

“Every investor who comes in will do so with the aim of continuing and developing economic activity. Perhaps a new investor will have even higher growth ambitions, and this could help the Latvian company to develop more successfully in the future. I do not see a change of potential investor as something negative.” In September 2020, the head of Fortum Latvia noted.

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