Aberdeen Standard Investments to acquire 66 per cent stake in Outokummun Energia
Aberdeen Standard Investments (ASI) Economic Infrastructure team and the City of Outokumpu have announced that ASI will acquire a 66 per cent interest in Outokummun Energia Oy (Outokummun Energia), a regional energy business based in the town of Outokumpu in North Karelia in Finland.
The transaction has been approved by the City Council and Board.
Outokummun Energia was formed in 2000 and at the end of 2019 it had approximately 5,280 electricity distribution and 4,260 energy customers. The Company produces, sells and distributes, electricity and heat in an efficient and reliable manner to its customers while supporting reduction in pollution emissions. Additionally, the Company has an electricity distribution network with a total length of 1,000km and a district heating network with a total length of 30km with the heat predominantly sourced from environmentally friendly fuel sources.
The Company and its management team will benefit from having an aligned shareholder group bringing together an experienced partner with deep infrastructure knowledge and continued local support from the City of Outokumpu. The shareholder group shares a joint objective of sustainable growth of the business through supplying the customers with safe, reliable and cost effective electricity and heat solutions and continued development of the local community.
The acquisition will be funded through ASI’s SL Capital Infrastructure II fund (SLCI II) and will be ASI’s fourth infrastructure transaction in Finland. The company’s Economic Infrastructure programme focuses on investing in core infrastructure assets in Europe, and already holds twelve other assets including: Suomen Kaasuenergia, a gas distribution business in Finland, two district heating businesses in Finland, a portfolio of solar PV plants in Poland, a portfolio of hydro-electric plants in Norway, four rolling stock assets in the UK, two stakes in offshore gas transmission pipelines in the Netherlands and two liquid bulk storage terminal businesses in the UK and Germany.
Dominic Helmsley, Head of Economic Infrastructure, Aberdeen Standard Investments, says: “The infrastructure team’s fourth investment in the Finnish infrastructure market follows our strategy to acquire and manage premium regulated infrastructure assets in Europe, and to work on behalf of our investors with local stakeholders to deliver safe and reliable essential services to local communities. We are delighted that the City of Outokumpu have selected us as their preferred partner in the continued delivery of electricity and heat services to Outokummun Energia’s clients and to continue the development of the company. The City of Outokumpu and Aberdeen Standard Investments have worked together to agree a transaction that benefits all parties and we look forward to continuing to work in partnership with the City”.
Pekka Hyvönen, Mayor, City of Outokumpu, says: “The transaction is well suited to the City’s risk management policy and enables a more efficient use of capital by the City of Outokumpu. The transaction allows for capital to be freed up and to be utilised for important, future investments whilst allowing the City to and diversify their risks. The international energy expertise brought to the Company by our new partner, Aberdeen Standard Investments, will definitely add value when preparing for the future.”