AP1 sells stake in hydroelectric firm

SWEDEN – Första AP-fonden, the SEK156.8bn (€17.3bn) Swedish buffer fund, has sold its 50% stake in hydroelectric power firm Iggesund Kraft to forestry firm Holmen for SEK41m.

“Holmen has today acquired all of the Första AP-fonden’s shares in Iggesund Kraft for SEK41m,” said Holmen in a statement. Iggesund Kraft was a partnership financing arrangement between the fund and Holmen, which bought all the power generated.

The move means Holmen takes full ownership of Iggesund Kraft. It said it has already consolidated the purchase, so it would have only a limited effect on consolidated results.

Iggesund Kraft is sole or part owner of hydroelectric power stations on the Ljusnan and Iggesund rivers with an annual output of 170 GWh.

According to Holmen’s shareholder register, Swedish pension institutions such as Alecta and AMF hold minority stakes in the business.

Earlier this month AP1 awarded a ‘risk mandate’ to its own managing director, William af Sandberg, to enable him to exploit the market and generate returns. The move came as the scheme said it aims to generate an active return by diverging from the composition of the strategic benchmark.

Meanwhile, occupational pension institution Alecta has sold all its shares in Skandia, according to press reports.

Dagens Nyheter quoted Alecta chief executive Tomas Nicolin as saying there are better alternatives than Skandia. It comes as Skandia has reportedly being stalked by speculative interest.

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