Suomen Voima Acquires Kaakon Energia’s Holdings in Puhuri, SV Vesivoima and Kanteleen Voima
11 December 2020

Suomen Voima Oy and Kaakon Energia Oy have come to an agreement that entitles the transaction of shares between the two parties. Suomen Voima acquires all of Kaakon Energia’s shares in Puhuri Oy, SV Vesivoima Oy and Kanteleen Voima Oy. The purchased shares accounts for approximately one fifth ownership of each company. The signing of the transaction deal was carried out today on 11.12.2020.

Suomen Voima and Kaakon Energia have since 2006 been jointly developing the aforementioned companies part of the transaction. However, during the past years, the purchaser’s and sellers’ strategies have taken different paths. In recent years, Suomen Voima has invested strongly in renewable and emission-free power production, including nuclear, wind, solar and hydropower. Through the arrangement, Kaakon Energia will be able to smoothen and restructure its power generation portfolio and financing structure.

With the transaction, Suomen Voima increases its holdings to 40 % in the already operating Puhuri’s Kopsa II wind park. Also, the holdings in the upcoming wind park projects Parha and Hankila grow to nearly 45 % respectively. Additionally, the holding in Puhuri’s development portfolio increases. In total, for Suomen Voima’s production portfolio this means an approximate increase of 70 GWh in annual wind energy production, once Parha and Hankila starts to operate in 2022.

Kopsa II wind park photographed on a foggy morning.

Kaakon Energia’s 20 % stake in SV Vesivoima’s CSCTCA A/S holding will be transferred to Suomen Voima, which means that Kaakon Energia exits from SV Vesivoima’s ownership structure. CSCTCA operates around 10 small-scale hydropower plants in Norway and their combined annual production is nearly 100 GWh on Suomen Voima’s ownership level (40 %).

Finally, Kaakon Energia’s approximate stake of 20 % in Kanteleen Voima’s Haapaveden powerplant and the Nordfuel development project are transferred to Suomen Voima. The project involves a construction of a biorefinery that would produce ethanol fuel from wood next to the Kanteleen Voima’s thermal power plant in Haapavesi. The refinery would produce lignin and biogas as well as sludge, which could be used as fertiliser, as by-products.

“This deal supports Suomen Voima’s carbon dioxide-free power production strategy. Together with our own wind projects and the almost doubling of Puhuri’s ownership will provide our owners a significant opportunity to increase domestic wind power production”, says Antti Vilkuna, CEO of Suomen Voima.

“Through the transaction, Kaakon Energia will be able to focus on other significant ongoing wind and nuclear power projects and develop new energy solutions for the changing energy market”, says Ari Saukkonen, CEO of Kaakon Energia.

“The arrangement clarifies the structure of our hydropower holdings in Norway and creates the conditions for expanding the portfolio in accordance with the strategy in order to achieve volume benefits”, says Pekka Saijonmaa, Suomen Voima’s Director of Development.

The parties have agreed not to publish the transaction sum. No staff were transferred in the transaction.

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