Borealis Infrastructure, the infrastructure investment arm of the Ontario Municipal Employees Retirement System ("OMERS"), together with investment partners, has signed an agreement to acquire Fortum Corporation's electricity distribution networks in Finland.
Borealis, with partners First State European Diversified Infrastructure Fund, and Finnish institutional investors Keva and LocalTapiola Pension, have agreed to acquire 100% of Fortum Distribution Finland ("FDF").
FDF is the owner of the largest electricity distribution network in Finland, with over 600,000 customers across the country, representing a greater than 20% market share. The network is regulated by the Finnish Energy Market Authority (EMV).
"Borealis Infrastructure is very pleased to be making its first investment in Finland, in a sector that provides an excellent match for the long-term obligations of the OMERS pension plan. Finland is one of the most attractive investment destinations globally, with strong economic prospects and a stable political regime and legal framework. Regulated and contracted energy assets in North America and Europe are an important part of our investment strategy, and together with our investment partners and the strong team at FDF, we will focus on delivering value to all stakeholders over the long-term" said Michael Rolland, President and CEO of Borealis Infrastructure.
Fortum will continue to provide services and support to the distribution business, including customer services, to ensure a smooth transition of ownership.
Completion of the transaction is expected during the first quarter of 2014, subject to customary regulatory approvals.