Neste Oil Corporation
Stock Exchange Release
18 December 2014 at 2.30 p.m. (EET)
Neste Oil to sell Kilpilahti electricity distribution network
Neste Oil has decided to sell all shares of Kilpilahden Sähkönsiirto Oy to InfraVia European Fund II, an infrastructure fund managed by InfraVia. The sale will produce a capital gain of approximately EUR 80 million for Neste Oil. The transaction is expected to be completed during the first quarter of 2015. The Neste Oil's decision to investigate the future of the Kilpilahti electricity distribution network was first announced on 7 October 2014.
In June 2014, Neste Oil incorporated its electricity distribution operations into Kilpilahden Sähkönsiirto Oy, as required by the new Electricity Market Act. Kilpilahden Sähkönsiirto Oy is responsible for high- and medium-voltage distribution in the Kilpilahti industrial area. In addition to Neste Oil, its customers include other companies operating in the area.
"In the near future, the Kilpilahti electricity distribution network requires significant investments. By selecting InfraVia as our electricity distribution partner, we are aiming to contribute to the effective implementation of the investments and, therefore, secure reliable electricity distribution in Kilpilahti. The sale will also allow us to release resources for investments in Neste Oil's key operations," says Matti Lehmus, Executive Vice President, Oil Products.
In connection with the transaction, the parties agreed that Neste Oil will supply the operating and maintenance services needed in electricity distribution and offered to Kilpilahden Sähkönsiirto Oy for two years.
Neste Oil Corporation
SVP, Communications and Brand Marketing
Matti Lehmus, Executive Vice President, Oil Products Business Area, tel. +358 10 458 4072
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company specializing in high-quality fuels for cleaner traffic. The company produces all of the most important oil products and is the world's leading supplier of diesels made of renewable raw materials. In 2013, the company's net sales stood at EUR 17.5 billion, and it employs some 5,000 people. Neste Oil shares are listed on the NASDAQ OMX Helsinki.
Neste Oil has been accepted into the Dow Jones Sustainability World Index. The company has also been on the Global 100 list of sustainable companies for several years in succession. CDP Forest has selected Neste Oil as one of the best companies taking care of their forest footprint in the oil and gas industry. www.nesteoil.fi
Infravia in brief
InfraVia is an investment manager dedicated to the infrastructure sector. InfraVia manages two infrastructure funds which are both positioned as long term investors across the infrastructure and energy sectors in Europe. InfraVia is affiliated with OFI Asset Management.
Backed by two major French mutual insurance companies, Macif and Matmut, OFI Asset Management puts its asset management skills at the service of third-party investors. With 61.8 billion of assets under management at the end of June 2014, OFI Asset Management employs 270 staff. OFI Asset Management aims to offer a complete range of products and services to European institutional investors.