In order to “stabilize” and strengthen the country’s control in the company, the Finnish government has acquired three percent shareholding in Nokia – the largest company in Finland which specializes in telecommunication and information technology.
Solidium Oy – Finland’s investment body with investments worth €8.4 billion – considers Nokia an important target because the company holds national value.
It acquired a 3.3 percent stake for €844 million (~Rs. 115 billion) which accounts for 10 percent of Solidium Oy’s comprehensive shareholding.
The government did this for the country’s taxpayers who will benefit from growing investment values in nationally important companies such as Nokia. This acquisition also stabilizes control and relation of the government with these companies.
Antti Mäkinen, Solidium’s CEO said,
The divestment of our stake in [mobile operator] Telia in the beginning of the year made it possible for us to invest into Nokia, which fits perfectly into Solidium’s portfolio. The appealing factors for us are the company’s strong market position combined with broad technological expertise, which provides opportunities for value creation. In line with our mandate, we hereby strengthen and stabilize the domestic ownership in this nationally very important company.
Nokia – A National Pride
Nokia’s mobile phone business has proven to be by far the most popular and successful operation by the company which made it the largest worldwide company and is viewed by Finnish people with “national pride”.
When its popularity declined and people shifted to other phone brands, the Finnish economy was significantly affected and job cuts were made.
These days, the Nokia Android-smartphone lineup is being produced by HMD Global under Nokia’s name which has produced classic-looking Mobile Phones to revive Nokia’s presence in the mobile phone market.