“The assumed construction project management tasks that have been the basis for the ownership have not been fulfilled,” says SRV’s CEO.
Construction company SRV will sell its stake, or 1.8 per cent, in the energy company Fennovoima to Raos Voima Oy, the company informs.
SRV says that on Friday it signed an agreement to divest itself of Fennovoima’s ownership and the construction project management agreements for the Hanhikivi 1 nuclear power plant project.
“Like other owners of Fennovoima, SRV is not a large energy user or energy company, but in 2015 we joined the project specifically from the perspective of the construction business,” SRV’s CEO Saku Sipola notes in the release.
“The assumed construction project management roles that have been the basis of ownership have not materialized. As a result, within the meaning of the agreements signed in 2015, we have ended up selling our stake in the project. ”
According to the release, the divestment will support the company’s strategic goal of reducing indebtedness and reducing the balance sheet of the investment business.
SRV became a shareholder in Fennovoima in 2015 and at the same time an agreement was signed on cooperation in the construction of the Hanhikivi 1 nuclear power plant on the Pyhäjoki River.
The project has suffered from numerous delays and Russian plant supplier Rosatom has had difficulty adapting to the requirements of the Finnish authorities. Fennovoima has estimated that commercial operation of the plant could begin in 2029.
Read more: The cost of the Pyhäjoki nuclear power plant project will rise to more than seven billion, the Hanhikivi 1 plant could not start up until 2029
SRV’s 1.8 per cent stake will now be transferred to Raos Voima Oy, part of the Rosatom Group. The entry into force of the agreement still requires the permission of the Ministry of Employment and the Economy. The entry into force is expected to take place during 2022.
If implemented, the agreement will not have a significant impact on SRV’s results, the release states. SRV is listed on the Helsinki Stock Exchange.
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