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.