Steel News

Outokumpu Sells Electricity Distribution Network at Tornio Site

11/26/2013 - Outokumpu is selling the electricity distribution network at its Tornio site in Finland to InfraVia European Fund II.
InfraVia II is an investment fund managed by OFI InfraVia, an independent investment company based in France specializing in the infrastructure sector. With the transaction, five Outokumpu employees will transfer to a new industrial electricity distribution company established by InfraVia II that will continue to operate the network at the Tornio site. 
The transaction is part of Outokumpu’s efforts to strengthen the company’s financial position and liquidity. Outokumpu expects to close the transaction in the coming weeks. The cash consideration of the transaction is agreed to be around € 63 million. The transaction is recognized as a sale and leaseback resulting in a finance lease, and its impact on Outokumpu’s result is not material.