Finland-headed energy utility major Fortum Oyj has announced that it has reached an agreement to acquire the entire shareholding in the Swedish electricity solutions provider Telge Energi AB on a cash and debt-free basis for approximately SEK 450 million (EUR 39 million) from municipality owned Telge AB.
According to a statement, the agreed acquisition supports Fortum’s strategic priorities to deliver reliable and clean energy, drive decarbonization of its customers’ processes, and transform and develop.
The transaction further strengthens Fortum’s leading position in providing clean electricity solutions to consumer and enterprise customers in the Nordics.
Telge Energi is one of the most well-known clean electricity solutions providers in Sweden, with high customer satisfaction and strong customer loyalty. The combination of Telge Energi and Fortum will have synergy benefits, which will enhance the development of new solutions and services for our consumer and enterprise customers. We are naturally very excited to be able to develop our sustainable solutions further in our geographical core markets, said Mikael Rönnblad, EVP of Fortum’s Consumer Solutions business.
Clean power retailer
Telge Energi is among the 10 largest clean electricity retailers in Sweden with a portfolio of approximately 150 000 customer contracts. The customer base consists of retail customers and households as well as small and mid-sized enterprise customers nationwide.
In 2022, Telge Energi delivered 1.8 TWh of electricity, the total of which was clean energy with an EBITDA of SEK 23 million (approximately EUR 2 million). The company has approximately 100 employees.
We believe that the change of ownership means exciting opportunities for Telge Energi and we are full of anticipation before becoming part of the Fortum group. For our employees, work continues as usual and our customers can expect the same good service as today, said Niklas Holberg, CEO of Telge Energi.
Telge AB is owned by the Södertälje municipality, and the transaction is subject to clearance by the Swedish Competition Authority and approval by the municipal government and the local government council of the Södertälje municipality.
Historically, Telge Energi, with the backing of the municipality, has been involved in driving the industry’s development toward renewable energy supply. Going forward, we see a need for large investments for a growing Södertälje, and the sale frees up resources for investment in our core business. It is now the right time to let a new owner take over the baton and we are proud to be able to hand over a well-managed Telge Energi, said Alexander Rosenberg (M), municipal councilor and Chairman of the Board of Telge.
The closing of the transaction is expected during the third quarter of 2023.
We see that an owner with a full focus on electricity trading would be the best thing for Telge Energi going forward. Fortum is one of the leading Nordic players and with their support, Telge Energi has good opportunities to develop its concept in the energy supply of the future, ended Jörgen Austler, acting CEO of Telge.
