E-CO Energi acquires Hafslund's hydropower production

04.08.17

Today, E-CO Energi acquired 90 per cent of the shares in Hafslund ASA. All activities other than hydropower production were demerged from Hafslund ASA. The acquisition entails a strengthening of E-CO Energi's position as Norway's second largest hydropower producer with a mean production of nearly 13 TWh.

Vamma power plant

On 26 April 2017, Oslo Municipality announced a substantial restructuring of the Municipality's ownership in the energy sector. The restructuring was approved by the Oslo City Council on 14 June. As a step in this programme, today E-CO Energi Holding AS acquired 90 per cent of the shares in Hafslund ASA, which, subsequent to the demerger, has changed its name to Hafslund Produksjon Holding AS. The Finnish energy company Fortum is acquiring the remaining 10 per cent of the shares. The agreed debt free cash free enterprise value is MNOK 7 750.

"The acquisition of Hafslund's hydropower production makes sense for E-CO Energi in terms of business, strategy and the industry. Our ambition is to grow, and the acquisition of Hafslund's hydropower plant consolidates our position as Norway's second largest power producer", comments Tore Olaf Rimmereid, President and CEO of E-CO Energi.

Hafslund's hydropower plant is an exceptionally good fit for E-CO Energi's power plant portfolio. E-CO is already the largest power plant owner on the River Glomma and the Lågen watercourse. The employees of Hafslund Produksjon will be hired by E-CO Energi through a transfer of business activities in autumn 2017.

"We are pleased that this transaction is now finally in place. Going forward, we will address the significant task of coordinating Hafslund's hydropower production with our existing business activities", adds Rimmereid.

E-CO Energi Holding AS is wholly owned by Oslo Municipality.

Contacts:

Per-Arne Torbjørnsdal, Senior Vice President, Business Development, +47 916 08 196

Alf Inge Berget, Vice President, Production, +47 909 88 887

Per Storm-Mathisen, Head of Communications, +47 982 55 406