Porta Finance and Rothschild & Co acted as sole financial advisers to Fortum Oyj (“Fortum”) on the 100% disposal of its District Heating & Cooling business in Estonia, Latvia, and Lithuania to Partners Group AG (“Partners Group”).
Fortum has signed an agreement to sell its district heating business in the Baltics to Partners Group, a leading global private markets firm, acting on behalf of its clients. The total consideration on a debt- and cash-free basis is approximately €800 million. The transaction is subject to customary closing conditions and is expected to be completed in the second quarter of 2021.
The transaction is a continuation of Fortum’s strategy execution, whereby Fortum continuously reviews its businesses to optimise its portfolio for value creation. In June 2019, Fortum announced it considered the strategic options for its district heating businesses in Estonia and in February 2020, Fortum announced it would review the district heating businesses in the other Baltic countries.
In the Baltics, Fortum provides district heating in five cities (Tartu and Pärnu in Estonia, Daugavpils and Jelgava in Latvia and Klaipeda in Lithuania). Further, in those cities Fortum owns four CHP plants as well as a 49% share of the Kaunas CHP (commissioned in 2020) in Lithuania, through a joint venture. In 2020, Fortum's sales in the Baltics was 1.4 TWh of heat and 0.6 TWh of power.
Porta Finance and Rothschild & Co acted as sole financial advisers to Fortum, including preparation and execution of a comprehensive divestment process.
Managing Partner, Porta Finance
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