The Spanish giant wanted Caruna, it didn’t suit everyone – “The offer wasn’t good enough”

Spanish Iberdrola buys 80 percent of the Finnish electricity network company From Carunabut the 20 percent ownership will still remain with the Mutual Pension Insurance Company Elon and a Swedish pension insurance company AMF:n in possession.

Elo owns 7.5 percent of Caruna and AMF 12.5 percent.

Elo’s equity investment director Jukka Vähäpesolan according to that, a purchase offer was also made to Elo, but they did not want to accept it.

“In our opinion, the offer was not good enough,” he says.

“The price should definitely have been higher in order for it to be sufficient for us. We see that Caruna has good potential going forward, because society is becoming electrified, more electricity is being consumed and networks are needed,” Vähäpesola reasons.

“Electricity networks play a key role in modern development. Of course, regulation must keep up, but Caruna definitely has potential and the price was the deciding factor, the offer should have been better.”

Vähäpesola does not comment on what would have been a high enough price to accept the purchase offer.

No significant changes are expected at Elo due to the change of main owner. According to Vähäpesola, it is normal for electricity network businesses to change owners, and this has already happened several times in the case of Carunan.

“It doesn’t really change the bigger picture, because this is a regulated operation. Of course, the new owner will bring some of his own views to the strategy and operation.”

Portfolio manager of AMF’s infrastructure investments Fredrik Lundeborg comment on the matter briefly by e-mail.

“We are satisfied long-term investors of Caruna and look forward to future cooperation with Iberdrola.”