Vattenfall Sells Unit for $2B

European power firm Vattenfall is selling its electricity distribution and district heating businesses in Finland to a consortium of investors in a deal worth 1.5 billion euros ($2 billion), Reuters reported Friday. The buyer is Lakeside Network Investments, a consortium made up of 3i Infrastructure, 3i Group, GS Infrastructure Partners and Ilmarinen Mutual Pension Insurance Co.

(Reuters) – State-owned power firm Vattenfall said on Friday it would sell its electricity distribution and district heating businesses in Finland to a consortium of investors in a deal worth 1.5 billion euros ($2 billion).

Vattenfall is in the process of slimming down its operations, aiming to cut an annual 6 billion crowns ($870 million) from costs by the end of 2013 as it focuses on core activities in Sweden, Germany and the Netherlands.

Vattenfall, one of Europe’s top power firms, said it was selling its electricity distribution network — the second largest in Finland — and Vattenfall Lampo Oyj, a district heating supplier, in a deal with an enterprise value of 1.54 billion euros.

The buyer is Lakeside Network Investments, a consortium made up of 3i Infrastructure Plc, 3i Group Plc, GS Infrastructure Partners and Ilmarinen Mutual Pension Insurance Co.

The deal is one of a number in recent weeks by Vattenfall.

This week, it completed the sale of its Polish electricity sales and distribution company to Poland’s Tauron Polska Energia SA for around 7.4 billion Swedish crowns ($1.1 billion) on an enterprise value basis.

At the end of last month it agreed to sell part of its electricity distribution and district heating networks in Hamburg to the city for 463 million euros ($618 million).