Fortum may invest 27 bln rbl in Russian facilities till 2023

MOSCOW, Jun 5 (PRIME) -- Finland’s power producer Fortum may invest 27 billion rubles in its Russia-based facilities until 2023, the Federal Antimonopoly Service Director Igor Artemyev said late on Monday after approving Fortum’s request to buy 47% in German power producer Uniper.

“This is a large multinational deal which is valued at around U.S. $4 billion. It should be mentioned that Fortum plans a serious investment program on the territory of the Russian Federation,” Artemyev said.

“The company intends to invest 9 billion rubles in upgrade and maintenance of its heating systems, 10 billion rubles in bringing its assets in accordance with the legislation, and 8 billion rubles in projects to upgrade and maintain generating and other equipment.”

In October 2017, Finland’s Fortum and Germany’s E.On signed an agreement to sell E.On’s 46.65% stake in Uniper to Fortum for 3.76 billion euros. Fortum also sent a buyout offer to the company’s shareholders to raise the stake to 47.12%.

In April 2018, the government’s commission for foreign investments control cleared Fortum to acquire the stake, but the transaction can be completed only after the law on foreign investment is amended.

Earlier in May, the State Duma, the parliament’s lower house, approved the amendments in the second reading.

Fortum hopes to close the deal in the middle of 2018.

(61.9290 rubles – U.S. $1)

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