Investor Consortium’s €2.9 Billion Acquisition of 50% Ownership in Stockholm Exergi Close

Investor Consortium's €2.9 Billion Acquisition of 50% Ownership in Stockholm Exergi Close

Castrén & Snellman advised Keva on the deal. Roschier advised Fortum. Wigge & Partners advised Alecta. White & Case LLP advised a consortium of long-term European institutional investors comprising APG Asset Management N.V., PGGM Vermogensbeheer B.V., Alecta pensionsförsäkring, Keva and AXA Infrastructure Equity in the transaction.

Fortum has signed an agreement to sell its 50% ownership in the Swedish district heating and cooling company – Stockholm Exergi Holding AB (publ) – to a group of long-term European institutional investors with a strong commitment to the infrastructure sector.

The consortium comprises APG, Alecta, PGGM, Keva and AXA. The total consideration is approximately SEK 29.5 billion (approximately EUR 2.9 billion based on current currency rate) based on a 100% enterprise value of SEK 71.9 billion (approximately EUR 7.1 billion based on current currency rate). Fortum expects to record a tax-exempt capital gain of approximately EUR 2.4 billion in the City Solutions segment’s results in connection with closing of the transaction. The transaction is subject to customary closing conditions. Fortum expects closing to take place before the end of 2021.

The consortium’s investment in Stockholm Exergi represents a significant milestone in their commitment to significantly reduce CO2 emissions. Stockholm Exergi has a fantastic track record of growth, leadership in ESG and delivering and developing customer centric solutions like Carbon Capture and Storage, all of which are driving the long-term sustainable energy transition of Stockholm and the region. The consortium intends to grow the Company by investing significant capital, targeting to enhance the environmental sustainability and efficiency of its heating plants and district heating networks.

Stockholm Exergi is the owner and operator of the largest and most versatile district heating and cooling system in the Nordics. 24 hours a day, all year round, the company provides highly environmentally sustainable district heating, cooling and waste management services for both corporate and residential customers across seven municipalities in the Stockholm County.

Fortum Oyj is a leading energy company within supply of electricity, heating, cooling, recycling and waste management. The divestment is a key part of Fortum’s strategic and ongoing evaluation of its assets in the energy sector.

Roschier’s core advisory team comprised Björn Winström, Emelie Zellmer, Vicky Kaufmann, Lovisa Eliasson, Kristian Hugmark, Jacob Giesecke and Erik Ficks.

The Castrén & Snellman team included Samuli Tarkiainen (Picture), Carola Lindholm, Karlo Siirala, Johanna Juureva and Mikko Alakare.

The team at Wigge & Partners Advokat consisted of senior associate Katja Flittner, partner Henrik Fritz and responsible partner Frida Sander.

The White & Case team which advised on the transaction was led by partners Jan Jensen and Henrik Wireklint (both Stockholm) and included partners Caroline Sherrell (London), Carl Hugo Parment, Martin Järvengren (both Stockholm), Tilman Kuhn (Dusseldorf) and Laura Hoyland (Berlin), counsel Michal Bark-Jones (Stockholm), Sara Nordin (Brussels) and Paul Harrington (London), and associates Marcus Halling, Alexander Berlin-Jarhamn, Josephine Martinsson, Carl Runesson, Johanna Wagner, Daniel Agnemyr, Omid Dares, Minna Horwitz (all Stockholm), Louse Lundberg (Brussels), Heidi Blomqvist, Emma Barker, Josephine Levick (all London) and Martin Braun (Dusseldorf). 

Involved fees earner: Mikko Alakare – Castrén & Snellman; Johanna Juureva – Castrén & Snellman; Carola Lindholm – Castrén & Snellman; Karlo Siirala – Castrén & Snellman; Samuli Tarkiainen – Castrén & Snellman; Lovisa Eliasson – Roschier; Erik Ficks – Roschier; Kristian Hugmark – Roschier; Vicky Kaufmann – Roschier; Björn Winström – Roschier; Emelie Zellmer – Roschier; Daniel Agnemyr – White & Case; Michael Bark-Jones – White & Case; Alexander Berlin-Jarhamn – White & Case; Heidi Blomqvist – White & Case; Martin Braun – White & Case; Marcus Halling – White & Case; Paul Harrington – White & Case; Minna Horwitz – White & Case; Laura Hoyland – White & Case; Martin Järvengren – White & Case; Jan Jensen – White & Case; Tilman Kuhn – White & Case; Josephine Levick – White & Case; Louise Lundberg – White & Case; Josephine Martinsson – White & Case; Sara Nordin – White & Case; Carl Hugo Parment – White & Case; Carl Runesson – White & Case; Caroline Sherrell – White & Case; Johanna Wagner – White & Case; Henrik Wireklint – White & Case; Katja Flittner – Wigge & Partners; Henrik Fritz – Wigge & Partners; Frida Sander – Wigge & Partners;

Law Firms: Castrén & Snellman; Roschier; White & Case; Wigge & Partners;

Clients: Alecta; APG Asset Management N.V.; AXA Infrastructure; Fortum; Keva ; PGGM;

Author: Federica Tiefenthaler