Ex-Fortum CEO Lilius says he has steered clear of Fingrid deals

Fortum CEO Kuula: Lilius has had nothing to do with Fingrid

Mikael Lilius

Tapio Kuula

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Finnish energy company Fortum’s former President and CEO Mikael Lilius says he has abstained from getting involved in any shape or form in the plans hatched by the Swedish capital investment group EQT of purchasing assets belonging to Fortum.
      Lilius held the post as the Fortum boss between 2000 and 2009. Since 1995 he has also acted as an investor and advisor with EQT.
      Lilius continues to be employed by Fortum in a lesser capacity.
      On Wednesday EQT reported on its tentative interest in purchasing, as part of an investment aggregate, a majority of the shares of the Finnish electricity transmission system operator Fingrid.
      Fortum, in turn, is in possession of 33.4 per cent of the voting rights in Fingrid. In monetary terms this may translate to hundreds of millions of euros.
     
Lilius explains that he has not taken part in conversations related to Fingrid in either Fortum or EQT.
      "I have clearly informed both parties of my legal incompetence regarding the matter”, Lilius says.
     
Since 1995 Lilius has been an EQT investor and advisor.
      Lilius does not recall if he has explained his advisory role specifically, because according to his interpretation he does not act in that role to any significant capacity.
      Because of the insignificance of the role it has not been mentioned in annual reports or other documents stating Lilius’s engagements outside of Fortum, he continues.
      The connection has not been a secret, however. In various contexts EQT has mentioned that Lilius belongs to its advisory team.
     
In 2008 Lilius’s role at EQT changed. A fund was set up to invest in energy production and infrastructure in Northern and Eastern Europe, and Lilius became a member of the infrastructure investment advisory committee of this fund.
      The investment advisory committee analyses various investments, but the decisions whether to invest or not are made by the board of the fund, which Lilius is not part of.
      Immediately in 2008, Lilius informed Fortum’s then chairman of the board Peter Fagernäs of his new role at EQT.
      When Fagernäs was replaced by Matti Lehti in the spring of 2009, Lilius again repeated the announcement of his EQT affiliation.
     
At the beginning of May Lilius was replaced by Tapio Kuula as the Fortum CEO.
      “Right there and then we made it clear that within Fortum Lilius would not be involved in this particular affair in any way”, says Kuula.
      “I believe that also in EQT Lilius has been very careful and consistent regarding this matter.”
     
The Finnish electricity producers Fortum and Pohjolan Voima are obliged to sell their shares in Fingrid following a European Commission ruling, according to which the distribution and production of electricity should be separated from each other.
      In Kuula’s interpretation, behind the request is the aspiration to develop the functioning of the electricity market.
      According to Kuula, for Fortum the development of the market is more important than ownership in Fingrid.


Previously in HS International Edition:
  Swedish capital investment group EQT interested in Finland´s electricity grid (27.8.2009)
  Announcing retirement, Fortum´s Lilius says decision-makers shirk responsibility (3.4.2009)

Links:
  Fingrid
  EQT
  Fortum

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