IFLR1000

Borealis €6.6 billion acquisition of Fortum's Swedish electricity distribution business

1/6/2015
Acquisition finance, Private acquisition
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€ 6.6 billion

$ 7.26 billion

Completed

1/6/2015

Overview:

  • A consortium comprised of Swedish pension funds Första AP-Fonden and Tredje AP-Fonden, Swedish mutual insurance and pension savings company Fulksam and international infrastructure investor Borealis Infrastructure Management acquired Fortum Distribution, the Swedish electricity distribution operations of Fortum, for SKr60.6 billion on a debt-and-cash-free basis.
  • It is said to be the largest transaction ever completed involving a Finnish company.
  • Fortum Distribution AB is the second largest player in the electricity distribution market in Sweden, with 900,000 customers representing a market share of around 17%.
  • The seller had been focused on divesting its power generation and electricity businesses, with the total consideration from sales in Finland, Sweden and Norway amounting to approximately €9.3 billion, with a €6.3 billion sales gain booked during 2014 and 2015.
  • The consortium members have more than 20 years of experience in the acquisition and management of infrastructure assets collectively.

Jon Moore - Journalist

Jurisdictions:

Finland
Sweden

Deal types:

Acquisition finance
Private acquisition

Practice area:

M&A

Governing laws:

England and Wales
Sweden

Industry sector:

Energy

Firms:
Avance

Party: Fortum (Seller)

Lawyers: Christoffer Charpentier, Ilkka Perheentupa, Robin Nordblad, Selinda Näse, Ulf-Henrik Kull

Linklaters

Party: Första AP-Fonden (AP 1) (Acquirer)

Party: Tredje AP-Fonden (AP 3) (Acquirer)

Party: Folksam (Acquirer)

Party: Borealis Infrastructure Management (Acquirer)

Mannheimer Swartling

Party: Första AP-Fonden (AP 1) (Acquirer)

Party: Tredje AP-Fonden (AP 3) (Acquirer)

Party: Folksam (Acquirer)

Party: Borealis Infrastructure Management (Acquirer)

Lawyers: Adam Green, André Andersson, Mattias Karlsson

Milbank

Party: Bank of America Merrill Lynch (Lender)

Party: BNP Paribas (Lender)

Party: The Bank of Tokyo-Mitsubishi UFJ (Lender)

Party: Crédit Agricole (Lender)

Party: Canadian Imperial Bank of Commerce (Lender)

Party: Danske Bank (Lender)

Party: Deutsche Bank AG Na ON (Lender)

Party: DNB Bank (Lender)

Party: Export Development Canada (Lender)

Party: HSBC (Lender)

Party: ING (Lender)

Party: National Australia Bank - NAB (Lender)

Party: Nordea Bank (Lender)

Party: RBC (Lender)

Party: Royal Bank of Scotland (RBS) (Lender)

Party: Scotiabank (Lender)

Party: Skandinaviska Enskilda Banken AB (Lender)

Party: Société Générale (Lender)

Party: Swedbank (Lender)

Lawyers: James Warbey, Suhrud Mehta

TM & Partners

Party: Bank of America Merrill Lynch (Lender)

Party: BNP Paribas (Lender)

Party: The Bank of Tokyo-Mitsubishi UFJ (Lender)

Party: Crédit Agricole (Lender)

Party: Canadian Imperial Bank of Commerce (Lender)

Party: Danske Bank (Lender)

Party: Deutsche Bank AG Na ON (Lender)

Party: DNB Bank (Lender)

Party: Export Development Canada (Lender)

Party: HSBC (Lender)

Party: ING (Lender)

Party: National Australia Bank - NAB (Lender)

Party: Nordea Bank (Lender)

Party: RBC (Lender)

Party: Royal Bank of Scotland (RBS) (Lender)

Party: Scotiabank (Lender)

Party: Skandinaviska Enskilda Banken AB (Lender)

Party: Société Générale (Lender)

Party: Swedbank (Lender)

Lawyers: Martin Rosell, Tobhias Brandell

Torys

Party: Borealis Infrastructure Management (Acquirer)

Lawyers: Michael Horwitz, Stefan Stauder

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