Birka Energi acquires Sigtuna Energi.Business Editors STOCKHOLM--(BUSINESS WIRE)--March 21, 2000 The municipality MUNICIPALITY. The body of officers, taken collectively, belonging to a city, who are appointed to manage its affairs and defend its interests. of Sigtuna and Birka Energi has entered into an agreement concerning the purchase by Birka Energi of the municipality's shares in Sigtuna Energi AB. Sigtuna Energi AB in turn owns, inter alia [Latin, Among other things.] A phrase used in Pleading to designate that a particular statute set out therein is only a part of the statute that is relevant to the facts of the lawsuit and not the entire statute. , 50 per cent of the shares in Brista Kraft AB. The purchase price for the shares is MSEK MSEK Meyer, Suozzi, English & Klein (New York law firm) MSEK Million Swedish Kroner 345. The agreement is subject to approval of the assembly of the municipality of Sigtuna and the Swedish competition authority. Sigtuna Energi AB owns and operates the local grid -- with approximately 16,000 subscribers -- and the district heating District heating (less commonly called teleheating) is a system for distributing heat generated in a centralized location for residential and commercial heating requirements. facilities within the municipality of Sigtuna. Brista Kraft produces electricity and district heating within the municipalities of Sigtuna and Upplands Vasby. The number of electricity subscribers of Brista Kraft are approximately 34,000, and electricity sales is approximately 800 GWh. Sales of district heating corresponds to approximately 480 GWh. "We are very pleased to be able to finally conclude this transaction, " says Peter Kockum, the chairman of the assembly of the municipality of Sigtuna. The sale of the shares of Sigtuna Energi AB will result in a substantial reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or of the finances of the municipality of Sigtuna. This reinforcement will be effected through decreased interest costs, and through reduction of the risk exposure as the guarantees for business provided by the municipality are removed. The future for these well kept companies will require major investments in new technologies and further development of the businesses to be carried out on a market exposed to fierce competition. Such investments will require a capable owner with a long term dedication and sufficient resources. The municipality of Sigtuna is not such an owner as the residents of the municipality of Sigtuna and the employees of Sigtuna Energi AB and Brista Kraft AB are entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to expect. The municipality has in the conclusion of the transaction ensured that the development of the tariffs are warranted, as well as the development within the environmental area . The CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Birka Energi, Tomas Bruce, is of the opinion that Sigtuna Energi is a well managed company that will fit very well within the business of Birka Energi. "At the same time this transaction is one further step in the structural redefinition Noun 1. redefinition - the act of giving a new definition; "words like `conservative' require periodic redefinition"; "she provided a redefinition of his duties" definition - a concise explanation of the meaning of a word or phrase or symbol of the energy production and distribution within the region. Through these structural changes the energy subscribers will be ensured energy deliveries on a long term basis, at competitive prices. For these reasons it is most satisfying that we now have been able to come to an agreement with the municipality of Sigtuna." Birka Energi is one of Scandinavia's largest energy companies with approx. 850,000 customers, electricity sales of 26 TWh, heating sales of 8 TWh and a turnover of approx. SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 13 billion. The city of Stockholm and Fortum Abp each own 50% of Birka Energi. ------------------------------------------------------------ Please visit http://www.bit.se for further information ----------------- The following files are available for download: http://www.bit.se/bitonline/2000/03/21/20000321BIT00390/bit0001.doc ------------------------------------------------------------------- http://www.bit.se/bitonline/2000/03/21/20000321BIT00390/bit0002.pdf ------------------------------------------------------------------- |
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