Elo continues as Caruna’s shareholder

The electricity distributor Caruna’s ownership structure has changed. After the holding arrangement, Elo continues as a long-term investor in the company with a 7,5 percent holding.

KKR, a US private equity investment firm, and Ontario Teachers’ Pension Plan Board (OTTP) have acquired First Sentier Investors’ holding of Caruna on March 1st 2021 and now hold 20% each. On the same day, the Swedish pension fund AMF has acquired Keva’s 12,5% holding. In addition, the Canadian benefit pension plan OMERS has agreed to sell its 40 percent holding to KKR and OTTP after regulatory approvals have been granted.

- Elo has been a shareholder in Caruna since 2014. We want to continue as a domestic and committed owner and a long-term infrastructure investor in the company. Caruna is a profitable and a well-led company with a stable outlook on growth, says Elo’s CEO Satu Huber. 

Elo invests its managed employment pension assets by diversifying investments according to geography and asset class. Investments into infrastructure have been increased in the past few years and Caruna stands as a significant investment for Elo. Caruna offers consistent and predictable profit over time and it acts as a stabilizing factor on the balance sheet regardless of investment market fluctuations. 

- Our holding in Caruna also meets Elo’s climate strategy goals. Electricity distribution plays a significant role in the transition to a carbon neutral economy as the society is becoming more electrified and the production of renewable energy is increased. These changes place high demands on the electricity network and Caruna as the biggest electricity distributor in Finland is well prepared, Satu Huber says. 

Infrastructure investments are typically fixed assets that are needed daily in everyday life and their demand isn’t sensitive to economic development. In addition to stability, infrastructure assets that combat climate change are valued. Elo has invested into wind power and forestry, among others. Elo is one of the biggest owners of wind power in Finland. In addition to generating profit, forestry assets act as a carbon sink. Internationally, Elo invests into infrastructure assets primarily through funds.