Annual Report 2014 | Suomeksi |

8 Acquisitions and disposals

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Gross investments in subsidiary shares by segment
EUR million 2014 2013
Power and Technology 0 0
Heat, Electricity Sales and Solutions 0 10
Russia 6 0
Distribution 0 0
Other 0 0
Total 7 11
Gross investments in subsidiary shares by country
EUR million 2014 2013
Finland 0 0
Sweden 0 0
Russia 6 0
Other countries 0 11
Total 7 11
Gross investments in subsidiary shares consist of interest‑bearing debt as well as paid cash according to purchase agreement added with direct costs relating to the acquisition less cash and cash equivalents in acquired subsidiary.
8.1 Acquisitions in 2014 and 2013
Total gross investments in shares amounted to EUR 69 million (2013: 15), of which investment in subsidiary shares EUR 7 million (2013: 11), shares in associated companies and joint ventures EUR 60 million (2013: 0) and available for sale financial assets EUR 2 million (2013: 4).
During 2014 Fortum has acquired additional shares in its associated company, Territorial Generating Company 1. After the acquisition Fortum owns 29.45% of the shares in TGC‑1.
In July 2014, Fortum acquired E.ON Ruhrgas International GmbH's shareholding of 33.66% in the Estonian natural gas import, sales and distribution company AS Eesti Gaas and a similar shareholding in the gas transmission service company AS Võrguteenus Valdus. The acquired shares increased Fortum's holding in both companies to approximately 51%. The transaction was finalised during the third quarter of 2014. Fortum continues to account for its holdings in the Estonian natural gas businesses using the equity method.
There were no material investments in associated companies or joint ventures during 2013.
8.2 Disposals in 2014 and 2013
Disposals 2014
In November 2014 Fortum sold its 31 %‑shareholding in the Finnish natural gas company Gasum Oy to the Finnish State. The sales price for the total amount of Fortum's shares was approximately EUR 310 million. Fortum booked a gain of roughly EUR 190 million, corresponding to approximately EUR 0.22 per share. The sales gain is booked in 2014 fourth quarter results of Fortum's Heat, Electricity Sales and Solutions segment.
In October 2014 Fortum sold its UK‑based subsidiary Grangemouth CHP Limited to its long term customer INEOS Industries Holdings Ltd. Grangemouth CHP Limited owns and operates a natural gas‑fired combined heat and power (CHP) plant located at Grangemouth in Scotland. The total sales price was approximately GBP 54 million (corresponding to approximately EUR 70 million). Fortum booked a gain in 2014 fourth quarter results of Fortum's Power and Technology segment.
In April 2014 Fortum agreed to sell its Norwegian electricity distribution to the Hafslund Group, listed on the Oslo Stock Exchange, and its heat businesses in Norway to iCON Infrastructure Partners II, L.P. fund. In addition, Fortum agreed to sell its shareholding in Fredrikstad Energi AS (49%) and Fredrikstad Energi Nett AS (35%) to the Hafslund Group. The total consideration was approximately EUR 340 million on a debt‑ and cash‑free basis. The sales gains are booked in Fortum's Distribution segment, EUR 16 million, and Heat and Electricity Sales and Solutions segment, EUR 52 million in the second quarter 2014 results. The one time sales gains correspond to approximately EUR 0.08 per share.
In January 2014 Fortum agreed to sell its 30%‑stake in the Swedish power company Karlshamns Kraft AB to the company's majority owner E.ON. The sale has a minor impact on Power and Technology segment’s first quarter 2014 results.
In December 2013 Fortum announced that it had agreed to sell its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The total consideration is EUR 2.55 billion on a debt‑ and cash‑free basis. Fortum booked a one‑time sales gain of EUR 1.85 billion corresponding to EUR 2.08 per share. The sales gain was reported in Fortum's Distribution segment in the first quarter of 2014.
Disposals 2013
During 2013 Fortum divested small hydropower plants in Sweden and a minor gain was recognised in the Power and Technology segment.
In June 2013, Fortum agreed to sell its 47.9% ownership in the Swedish energy company Härjeåns Kraft AB to the Finnish energy company Oy Herrfors Ab, a subsidiary of Katternö Group. The sales price was SEK 445 million (approximately EUR 51 million). The transaction was completed in July and a capital gain of EUR 17 million was booked to Distribution segment's third quarter results.
In July 2013 Fortum completed the divestment of its 33% holding in Infratek ASA to a fund managed by Triton. The sales price was NOK 295 million (approximately EUR 38 million). A capital gain of EUR 11 million was booked in the Power and Technology segment's third quarter results.
During fourth quarter 2013 there were several divestments that had a minor effect to Heat, Electricity Sales and Solutions segment's results. In November 2013 Fortum sold its 50% ownership in the Finnish district heating company Riihimäen Kaukolämpö Oy to the City of Riihimäki (40%) and to Riihimäen Kaukolämpö Oy (10%).
In December 2013 Fortum sold its Kauttua combined heat and power (CHP) plant in Eura, Finland to the Finnish energy company Adven Oy. Also in December 2013 Fortum sold its CHP plant as well as its natural gas and district heating network in the town of Nokia to Leppäkosken Sähkö Oy. Furthermore Fortum’s Uimaharju CHP plant ownership was transferred to Stora Enso on 31 December 2013 according to an earlier agreement signed in 1990.
Divestments
EUR million 2014 2013
Divestment of subsidiaries 1)
Intangible assets and Property, plant and equipment 1,342 30
Other non‑current and current assets 204 3
Liquid funds 10 1
Interest‑bearing loans ‑131 ‑22
Other liabilities and provisions ‑622 ‑3
Non‑controlling interests
Gain on sale 1,958 12
Sales price received 2,761 21
Less proceeds not yet settled in cash 2 ‑2
Less liquid funds 10 1
Sales price for the shares (net of cash) 2,750 22
Proceeds from interest‑bearing receivables 131 22
Proceeds not yet settled in cash 2 ‑2
Total 2,884 42
Divestments in associated companies 311 100
Divestments of available for sale financial assets 1 0
Gross divestment of shares 3,196 142
1) Divestments of subsidiaries include assets and liabilities that were classified as Assets held for sale in the balance sheet as of December 2013.

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