Finnish utility Fortum Oyj agreed to sell its 50% holding in Stockholm Exergi Holding AB to a group of institutional investors comprising APG Asset Management, PGGM (PGGM Infrastructure Fund), Alecta, Keva, and AXA IM Alts (AXA SA) for 29.5 billion Swedish kronor (US$ 3.45 billion). Stockholm Exergi is the owner and operator of the largest and most versatile district heating and district cooling network in the Nordics. Stockholm Exergi provides highly environmentally sustainable district heating for both corporate and residential customers across seven municipalities in Stockholm County, and critical electricity capacity to the Stockholm electricity grid.
Stockholm Exergi is the largest supplier of district heating in Sweden with close to 10 TWh in yearly energy sales (heat, cooling and electricity combined). Stockholm Exergi has an annual turn-over of nearly €700 million and 700 employees.
The completion of the transaction remains subject to applicable regulatory approvals and is expected to take place before the end of 2021.
The investor group intends to grow Exergi by investing significant capital, targeting to enhance the environmental sustainability and efficiency of its heating plants and district heating networks.