Infranode and Mirova have entered into an agreement to acquire a 33.9% stake in the Finnish energy utility company Loiste
- Infranode and Mirova, through Core Infrastructure Fund II, have a long-term investment strategy and extensive experience from developing energy companies in Finland, the Nordics and Europe
- Loiste is the second investment into the Nordic energy sector that Infranode and Mirova do together
- The new co-owners want to continue developing Loiste based on company’s current strategy
- Sellers, the municipalities of Kajaani and Sotkamo say the sale will enable them to recycle capital to other uses and ensures that Loiste will have professional and committed long-term co-shareholders
- Loiste says the new ownership structure will not change company’s strategy or affect the personnel.
Helsinki, April 17th – A consortium consisting of Infranode and Mirova has entered into an agreement to acquire a minority stake in the Finnish energy utility company Loiste from the municipalities of Kajaani and Sotkamo.
Infranode and Mirova’s Core Infrastructure Fund II will jointly hold 33.9% of the shares in Loiste after the transaction. Kajaani and Sotkamo will reduce their ownership down to 66.1% of the company.
“The new ownership structure will facilitate long-term development of the company and support the necessary infrastructure investments. The transaction will not change our strategy or affect the personnel” Reino Huusko, CEO of Loiste companies, says.
”We are very excited that Kajaani and Sotkamo chose our consortium as Loiste’s long-term co-shareholder. We are committed to support the development of the company, society and the Kainuu region. We want to ensure that Loiste has the financial and operational capabilities to provide reliable and sustainable services and products to its customers”, says Aleksi Graan, Country Lead for Finland at Infranode.
”We are delighted to enter into a long-term partnership with the municipalities of Kajaani and Sotkamo to support Loiste delivering a high level of essential services to its customers, employees, suppliers and all its stakeholders”, says Mounir Corm, Deputy Head of Infrastructure Funds at Mirova.
”This transaction fits perfectly into the existing ownership policy of the municipality of Kajaani”, Mayor Jari Tolonen says.
”We are pleased to welcome to our well-managed company a strong minority owner, which wants to be involved in long-term development of Loiste”, Sotkamo Mayor Mika Kilpeläinen comments.
The consortium was advised by Icecapital, Castren & Snellman, Pöyry, Deloitte, and Marsh.
Loiste operates electricity distribution, district heating and electricity retail businesses. Loiste’s revenues in 2018 were about EUR 120m. The company has 58,000 electricity distribution customers with the network area corresponding to 7% of Finland’s land area. District heating network serves customers in the city of Kajaani with annual deliveries of 300 GWh. Loiste is the 5th largest electricity retailer in Finland.
Infranode is a long-term infrastructure investor in the Nordic region within energy, transport, telecommunications and social infrastructure. We manage c. EUR 450 million of capital from well-known institutional investors such as LocalTapiola, European Investment Bank and AP4, Swedish State Pension fund. Infranode has a local team of investment professionals and offices in Helsinki, Stockholm, and Oslo.
Mirova, an affiliate of Natixis Investment Managers dedicated to sustainability investing, is an investment manager dedicated to responsible investment. Through a conviction-driven investment approach, Mirova’s goal is to combine search of value creation over the long term with sustainable development. Mirova’s talents have been pioneers in many areas of sustainable finance. Their ambition is to keep innovating to propose the best tailored and most impactful solutions to their clients. As of December 2018, Mirova has EUR 10.1 billion of assets under management.
With over 15 years’ experience in the structuring and management managing of infrastructure assets, Mirova’s Infrastructure Teams provide institutional clients with investment opportunities both in greenfield and brownfield assets while supporting the sustainable development of local economies.
+358 (0) 40 511 5473
+46 (0) 70 755 9978
Shan / Mirova
+33 (0)1 44 50 58 80
City of Kajaani
+358 (0) 44 710 0303
Municipality of Sotkamo
+358 (0) 44 750 2