City of Oslo to combine the ownership of Hafslund and E-CO Energi

20.03.18

The City of Oslo has promoted a proposal to combine the ownership of Hafslund AS and E-CO Energi Holding AS under a new joint parent company that will be 100% owned by the City of Oslo. The combined business becomes a significant player in the Norwegian energy industry as Norway's second largest power producer with 13 TWh renewable hydro power production, and Norway's largest grid company with approximately 710,000 customers.

The combined ownership is made to secure competence throughout the value chain of production and distribution of power, and in order to be well positioned for the expected changes in the energy industry going forward. The combined group will target a key position in the expected consolidation in the industry.

The boards of Hafslund AS and E-CO Energi Holding AS have actively participated in developing the City government?s decision base. The City of Oslo will appoint a board for the new company. Finn Bjørn Ruyter in Hafslund is intended the role as CEO of the combined business.

Hafslund AS and E-CO Energi Holding AS with subsidiaries will continue their business as of today. All financing and debt will be maintained in the respective companies. The combining of ownership will not affect financial ratios for Hafslund AS and E-CO Energi Holding AS.

The combined ownership is subject to approval by the City Council of Oslo and necessary approvals from regulatory authorities. The combined ownership is expected to be completed in second quarter 2018.

The City of Oslo has published on its web pages a notice with information about the proposed combined ownership. The information is in Norwegian only and is available at: https://www.oslo.kommune.no/politikk-og-administrasjon/politikk/byradet/for-pressen/pressemeldinger/

Contacts:

Tore Olaf Rimmereid

President and CEO

+47 909 92515

Morten J. Hansen

Acting CFO

+47 908 28577

Kjell Arne Hansen

Treasurer

+47 950 40 372