Finland Times

The deal will be completed in early 2014, Finnish Broadcasting Company YLE reported. After the deal closes, Fortum's electricity distribution section will be a new company, which is named Suomi Power Networks Oy.

 The Australian asset management company First State Investments and Canadian infrastructure management company Borealis Infrastructure will each own 40 percent of the new company.

 The Finnish pension fund Keva will take a 12.5-percent stake, and the Finnish insurance company LahiTapiola will own the rest 7.5 percent.

 According to YLE, Some 320 employees and 600,000 customers of Fortum will be transferred to the new company after the deal completes.

 The market reacted positively to the sale after the news was released. Fortum's share price surged by 6 percent on Helsinki Stock Exchange Market on Thursday.

 Fortum is a Finnish energy company whose majority stakes are owned by the Finnish government. Fortum's power distribution network accounts for 20 percent of market share in Finland.

 Fortum operates and maintains power plants and provides other energy related services. The company's main product is the production and distribution of electricity, heat and steam.