STOCKHOLM, Sweden, Jan. 16, 2002 (PRIMEZONE) -- Graninge AB has increased its holding in Kainuun Sahko Oyj, based in the city of Kajaani in central Finland. An agreement was signed on Wednesday with three municipalities - Kuhmo, Suomussalmi and Vaala - according to which Graninge is to buy their minority holdings. After the acquisition Graninge will hold just under 51 per cent of the share capital and will thus become a majority owner.
Graninge acquired a 26-percent stake in Kainuun Sahko in 1997. The remaining owners in the company, aside from Graninge, are the municipalities of Kajaani (37 percent) and Sotkamo (12 percent).
The purchase price for the current acquisition is more than MEUR 21, which corresponds to nearly MSEK 200.
Lars Enslof, Graninge's Managing Director and CEO, commented that Graninge has now advanced its positions in Finland:
"For us it was gratifying that we could reach an agreement and complete the deal, now that the municipalities were willing to sell their shares in this well managed company. The company has recently undergone extensive organizational changes which have strengthened the company's competitiveness. It is also pleasing that we now have a Finnish distribution company, which will be a valuable complement to the hydropower we have in Finland through Graninge Energia Oy.
Kainuun Sahko has 55,000 electricity customers and is the leading seller of green electricity in the Finnish market. Annual electricity sales amount to 900 GWh and the company produces 310 GWh of power and 280 GWh of district heating per year.
The deal is subject to the approval of the Finnish competition authorities.
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