(Adds detail, quote, context)
By Dasha Afanasieva and Arno Schuetze
Dec 13 (Reuters) - London-listed 3i Infrastructure Plc
said on Wednesday it had agreed to sell its stake in
Finnish power company Elenia Oy to Allianz Capital Partners
, Australian infrastructure investor Macquarie
and the State Pension Fund of Finland.
Two sources familiar with the matter said the price equated
to an enterprise value - debt plus equity - for the whole of
Elenia of around 3.5 billion euros ($4.2 billion), making it one
of Europe's biggest infrastructure deals of 2017.
The deal follows several sales of regulated grid businesses
in recent years as European energy companies have sought to cut
debt and raise funds for new infrastructure projects.
Finland’s Fortum recently sold all of its
Scandinavian distribution assets for 9.3 billion euros.
3i Infrastructure said the sale of its 39.3 percent stake in
Finland's second-largest power company to the consortium would
generate gross proceeds of about 725 million pounds ($968
The Macquarie and Allianz consortium beat competition from
China Southern Power Grid and a group of investors including
Queensland Investment Corporation (QIC) and the Netherlands'
second-largest pension fund PGGM, according to people familiar
with the matter.
Elenia made a core profit of 168.4 million euros last year
on revenue of 315.3 million euros. It services about 420,000
customers in more than 100 municipalities.
Since the 3i Infrastructure-led consortium acquired Elenia
in January 2012 for around 1.5 billion euros, the business has
invested over 600 million euros aimed at increasing weather
proofing of the network to improve reliability of electricity
supply for customers.
"We look forward to our partnership with Allianz Capital
Partners, MIRA and Valtion Elškerahasto (the State Pension Fund
of Finland) who will support our continued investment programme
focused on weather proof distribution of electricity and
continuous development of digital services for our customers,”
Elenia chief executive Tapani Liuhala said.
($1 = 0.7491 pounds)
($1 = 0.8506 euros)
(Additional reporting by Jussi Rosendahl in Helsinki and
Radhika Rukmangadhan in Bengaluru; Editing by David Evans and
First Published: 2017-12-13 16:16:17
Updated 2017-12-13 16:56:15
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