UPM's associated company Pohjolan Voima is negotiating with the State of Finland and Ilmarinen on the transaction of Fin
Helsinki, FINLAND,Jan 26, 2011 – The energy company Pohjolan Voima Oy, the State of Finland and the Mutual Pension Insurance Company Ilmarinen are negotiating on the sale of Pohjolan Voima's 25% shareholding of Fingrid, the Finnish electricity transmission system operator. The State would acquire approximately 81% of the shares and Ilmarinen approximately 19% of the shares owned by Pohjolan Voima.
The closing of the transaction requires signing of the final transaction documentation and approvals of the decision making bodies of the respective parties as well as regulatory approval.
Upon closing, the transaction price would be EUR 325 million, and Pohjolan Voima would record a capital gain of EUR 200 million for the transaction.
UPM owns 43.09% of Pohjolan Voima. Upon closing, UPM will recognise a special income of EUR 86 million from the sale in the associated company results.
Pohjolan Voima estimates that the transaction will be closed during the first half of 2011.