SRV GROUP PLC INVESTOR NEWS 04 FEBRUARY 2022 17.30 EET
SRV will sell the share it holds in Fennovoima (1.8%) to RAOS Voima Oy
SRV has today, February 4th, 2022, signed a set of agreements with RAOS Voima Oy, which will lead to SRV’s exit from its ownership in Fennovoima and from the agreements regarding project management in the Hanhikivi 1 project.
“Unlike other Fennovoima´s owners, SRV is not a big user of energy nor a power company, and the company entered into the project in 2015 specifically from construction business viewpoint”, says Saku Sipola, President and CEO of SRV. ”The expected project management tasks, on which SRV’s ownership was based, have not been realised. As a result, within the purpose of the agreements signed in 2015, we have come to a decision to sell our ownership in the project.”
The exit supports the company´s strategic goals to reduce indebtedness and reduce the balance sheet in the Investments segment.
SRV became a shareholder of Voimaosakeyhtiö SF, the main owner of Fennovoima, through its subsidiary SRV Voima Oy in 2015. At the same time, SRV Voima Oy made a financial commitment equating to a 1.8% holding in the Fennovoima to Voimaosakeyhtiö SF. Becoming a shareholder in Voimaosakeyhtiö SF was in addition to the arrangement in which SRV entered into a co-operation agreement with the plant supplier RAOS Project Oy and the main contractor Titan-2 for the construction of the Fennovoima nuclear power plant.
SRV, Rosatom and Titan-2 have agreed, within the purpose of the agreements, on an arrangement, in which SRV exits its ownership in Fennovoima and simultaneously the agreements relating to project management in the Hanhikivi 1 project will be terminated. The ownership of SRV Voima Oy will be transferred to RAOS Voima Oy, which is a company belonging to Rosatom Group.
The completion of the contractual arrangement is subject to approval by the Ministry of Economic Affairs and Employment. The completion is estimated to take place in 2022.
The contractual arrangement, if completed, has no significant impact on SRV´s results.
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, firstname.lastname@example.org
SRV in brief
SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes into consideration the wellbeing of both the environment and people. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter – and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in both Finland and Russia. In 2021, our revenue totalled EUR 932.6 million. In addition to about 1,000 SRV employees, we have a network of around 3,600 partners.
SRV – Building for life
RAOS Voima Oy
RAOS Voima Oy is a 100% subsidiary of Rusatom Energy International JSC, a company of Rosatom State Corporation. Since 2014 RAOS Voima Oy owns 34% shares in Fennovoima Оу nuclear energy company, the Customer and the future Licensee of the Hanhikivi 1 NPP in Finland.