Loimua Oy Oriveden Aluelämpö Oy
The City of Orivesi sells its stake in Oriveden Aluelämpö to Loimua
Neuvoa acted as financial advisor to the City of Orivesi in a transaction in which the city sold its ownership stake in the district heating company Oriveden Aluelämpö Oy to the energy company Loimua Oy. Neuvoa supported the City of Orivesi in particular with the pricing of the transaction and with the net debt and net working capital reconciliations.
The City of Orivesi and Loimua had previously each owned half of Oriveden Aluelämpö Oy. As a result of the transaction, the entire company, together with the production and distribution of district heating in Orivesi, transferred to Loimua’s ownership. Founded in 1979 and with revenue of approximately EUR 2.1 million, the company’s shares were sold for a purchase price of five million euros, which the net debt and net working capital reconciliations will increase by a further EUR 300,000–400,000.
For the city, the arrangement freed up significant capital for basic-services and infrastructure investments as well as for managing its debt. At the same time, the continuity of district heating in the area was secured: Loimua committed for a period of five years to keeping price increases at no more than the level of general cost development, and the city will continue as a district heating customer of Loimua.
– District heating will continue to be a reliable and easy form of heating in Orivesi, for industry, for various types of properties, and for housing companies and detached houses alike. We are committed to keeping the price of district heating competitive and stable and to further developing district heating production in the area, says Loimua’s CEO Timo Piispa.
– The comprehensive studies commissioned by the city showed that, for the city’s finances and its future, it makes sense to give up its own district heating operations, says Mayor Juha Kuusisto. – Through the sale, the city also gains significant capital for important basic-services and infrastructure investments, for example the Rovastinkangas school and multipurpose hall currently under construction, as well as for managing its debt.
Further information in Loimua’s press release: https://loimua.fi/ajassa-ja-blogi/orivesi-myy-osuutensa-kaukolampoyhtiosta-loimualle/