Abrdn is acquiring a 49% interest in Finnish district heating company Etelä-Savon Energia on behalf of its latest European mid-market core infrastructure fund.

The investment firm said its third core infrastructure fund, ASCI III, has agreed to invest in the regional energy business based in the City of Mikkeli in the eastern part of the country. Financial details were not disclosed.

Etelä-Savon Energia, formed in 1900, has around 2,500 district heating and 25,000 electricity distribution connections.   

The investment is the fourth investment by ASCI III, which is currently fundraising and investing in the mid-market European infrastructure.

Dominic Helmsley, head of Abrdn’s infrastructure business, said: “We are thrilled to announce the fourth transaction from our third infrastructure fund, ASCI III, and our fifth investment in Finland. This transaction follows our strategy to acquire and manage premium infrastructure assets in Europe, and to work on behalf of our investors with local stakeholders to deliver safe and reliable essential services to local communities.”

Soti Calochristos, investment director at Abrdn’s infrastructure business, said: “We are delighted that the City of Mikkeli have selected us as their preferred partner in the continued delivery of heat and electricity services to Etelä-Savon Energia’s clients and to continue the development of the company.

“We look forward to working closely with the city and the company to grow and support the business during its energy transition, whilst continuing to provide sustainable and reliable energy to the local community.”

Janne Kinnunen, the mayor of Mikkeli, said: “During the process, Abrdn turned out to be clearly the best partner candidate from the point of view of the city of Mikkeli. The company has experience with municipal energy companies and is committed to the goals set by the city council.”

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