AMF, Ontario Teachers’ Pension Plan Board and KKR become new shareholders in Caruna alongside Elo

AMF, Ontario Teachers’ Pension Plan Board and KKR become new shareholders in Caruna alongside Elo

Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and KKR have each acquired a 20% holding in Caruna, Finland’s largest electricity distribution company, from First Sentier Investors (FSI). In a separate transaction that also completed today, AMF has acquired Keva’s 12.5% holding in Caruna. Both transactions have received all necessary regulatory approvals.

Separately, Ontario Teachers’ and KKR have signed binding documentation to acquire a further 40% holding in Caruna from OMERS, which will increase their ownership to 40% each. This later transaction is expected to close during the second quarter of 2021, pending regulatory approvals.

No further details around these transactions were disclosed.

KKR is making the investment through its core infrastructure strategy which focuses on investing in high quality regulated assets in developed OECD markets. Since 2008 across its global infrastructure business, KKR has deployed more than $24 billion in more than 40 infrastructure investments. Ontario Teachers’ is Canada’s largest single-profession pension plan. It has extensive experience in investing in regulated electricity transmission and distribution businesses, as well as the broader energy sector. AMF manages collectively agreed occupational pensions for approximately 4 million customers and is owned equally by the Swedish Trade Union Confederation (LO) and the Confederation of Swedish Enterprises (Svenskt Näringsliv).

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“The electrification of society and the increase of renewable energy production – key elements of Finland’s decarbonization plans – require a strong and smart electricity network. We are convinced that Caruna is well-placed to build a smart and weatherproof electricity network for its customers that will meet growing consumption needs while helping transition to a low-carbon economy. We are committed to investing in Caruna to achieve these goals,” says Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources at Ontario Teachers’.

 
“All Caruna’s owners are large and well-established infrastructure investors with significant experience and resources to support and develop the company over the long term. We are also pleased to maintain Elo as a longstanding domestic investor. The company and its personnel will continue to operate in accordance with its existing strategy and business plan,” says Matti Ruotsala, Chairman of the Board of Caruna.

 
Upon the closing of all three transactions, the ownership of Caruna will be as follows:

 KKR 40%

Ontario Teachers’ 40%

AMF Pension 12.5 %

Elo Mutual Pension Insurance Company 7.5 %

 
For more information: Matti Ruotsala, Chairman of the Board of Directors, Caruna. Contacts via Caruna’s media phone, tel. +358 20 520 5500

Caruna distributes electricity and maintains, repairs and builds a weatherproof electricity network for well over 700 000 customers in South, Southwest and West Finland, as well as in the city of Joensuu, the sub-region of Koillismaa and Satakunta. In order to guarantee a reliable electricity supply to its customers under all circumstances, Caruna supervises its network 24/7. A weatherproof smart electricity network also provides a well-functioning energy system for the future when digital services increase, the traffic is electrified, and the consumer becomes a producer of energy.  www.caruna.fi, Twitter @CarunaSuomi


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