Energy firm Fortum of Finland said Monday it had secured enough stock to give it so-called “negative control” over Oslo utility Hafslund.
Hafslund has been at the center of a political storm since city officials announced plans to sell the city’s controlling stake in the company. While some politicians want to see proceeds from the sale used for public works projects, other politicians want the city to retain a strong ownership stake in the company.
Meanwhile, Fortum has proceeded to build up its own stake in Hafslund. It reported Monday that it now holds nearly 33 percent of the Oslo electric utility’s voting shares and 36 percent of its non-voting shares.
The city now sits with 58.5 percent of the voting shares and 46.8 percent of the non-voting shares. Most private stockholders have sold out.
Fortum will be required to make an offer for all outstanding Hafslund shares if its own stake passes 40 percent. The offer must be equal to the highest price it paid during the preceding six months.
It recently has paid as much as NOK 40 per share.