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Fortum logo is pictured on the biomass combined heat and power plant in Jelgava February 3, 2014. REUTERS/ Ints Kalnins

Finland’s Fortum bids $115 million for Polish utility

Finnish state-controlled utility Fortum said it has launched a public tender offer worth up to 106 million euro ($115 million) for Polish electricity and gas seller Duon DUOP.WA.

Fortum said it had bid 3.85 Polish zlotys per share for the company, a 19.2 percent premium to Duon’s three-month weighted average share price. Duon’s shares jumped more than 11 percent.

Fortum is looking for acquisitions following its recent 9.3 billion euro power grid divestments in the Nordics.

Reuters last month reported that Fortum was among the three shortlisted bidders in an auction of German waste management company EEW.

“The (Duon) transaction is aligned with Fortum’s strategy to grow its share in electricity sales and related customer services,” Fortum said in a statement.

It said it would proceed with the Polish acquisition if it managed to gain 51 percent of the shares by the end of February. Shareholders representing 44 percent of shares have already committed to sell their shares.

The bid values Duon at 102 million euros but possible warrant conversions may increase the number of shares and bring the valuation to 106 million euros.

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