Fortum makes a public tender offer for the electricity and gas sales company Duon in Poland

Fortum has made a public tender offer in Poland to purchase all shares in Grupa Duon SA, an electricity and gas sales company listed on the Warsaw Stock Exchange. Fortum will carry out the acquisition if it receives at least 51% of the shares by the end of the offer period. The transaction is aligned with Fortum's strategy to grow its share in electricity sales and related customer services.

The price offered per share is PLN 3.85 (US$0.962), representing 19.2% premium to Duon's three months' weighted average share price. The offer period commences on 28 January, 2016 and is estimated to close on 26 February, 2016. The offer has been made in compliance with the Polish legislation and rules of the Warsaw Stock Exchange, and it is subject to the Polish competition authority clearance.

Shareholders representing approximately 44% of Duon's share capital including the current members of the management board have committed to sell their shares to Fortum subject to certain conditions. Fortum does not own any of Duon’s shares at the moment.

Duon sells electricity and natural gas in Poland on a third-party access basis (TPA), that is via transmission and distribution networks operated by distribution companies. It is one of the largest privately-owned retail electricity and gas sales entities in Poland. In addition, Duon is involved in the wholesale trading of electricity and gas. The company also supplies grid gas and LNG (Liquefied Natural Gas) via its own infrastructure. Duon's market capitalisation on 7 January, 2016 was approximately PLN 393 million (US$98.2 million).

Markus Rauramo, Executive Vice President, Heat, Electricity Sales and Solutions segment of Fortum, says:

"Duon would offer us a good growth platform on the Polish retail market as Fortum is looking for ways to grow faster in new energy services for consumers, communities and businesses."