Overview

Elenia is the owner and operator of the second largest electricity distribution business in Finland and a complementary district heating business. The company’s electricity distribution network is c 69,000 km in length and serves c 420,000 residential, industrial and business customers, with a market share of approximately 12%. Elenia Heat owns and operates 16 local district heating networks across Finland with a total network length of almost 500 km serving c 85,000 end-users.

3i Infrastructure acquired its interest in Elenia in January 2012 as part of a consortium with GS Infrastructure Partners and Ilmarinen Mutual Pension Insurance Company.

In December 2017, 3i Infrastructure sold its stake in Elenia to a consortium comprising Allianz, Macquarie Infrastructure and Real Assets and Valtion Eläkerahasto, the State Pension Fund of Finland, generating gross proceeds of approximately £725 million.

Highlights

• Rebranded the business and strengthened the management team
• Invested over €600m to improve reliability of electricity supply for customers
• Increased underground cabling rate from 23% at the beginning of 2012 to 40% in 2017
• Reduced customer outages by over 10 hours per year
• Refinanced the business increasing flexibility to fund future capex requirements
• Invested in leading digital network management and ‘smart’ customer usage and outage monitoring

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.