Framework of Solidium's operations
Solidium is a minority shareholder in nationally important listed companies. Solidium may also have minority interest in companies which target listing in the near-term.
Solidium’s operations are market-based, and investment decisions are only made when financial prerequisites are met. The companies owned by Solidium are nationally important. The national interest may include aspects such as economic perspectives, competence, infrastructure or security of supply links, the company’s position in a cluster important for Finland, making use of Finland’s national heritage, or other factors important to Finland. The national interest requirement may be met by one criterion or a combination of criteria.
Solidium’s investment decisions are made by the Board of Directors, which has a broad authority granted by the owner to make decisions concerning the portfolio companies and new investments.
As a long-term owner, Solidium applies an operating model which differs considerably from portfolio investing. The objective is not to pursue optimisation of the return of the holdings in the short term against stock market indices, but to support the development of the companies’ shareholder value in the long term. This operating model requires in-depth insight into the holdings, including their business operations, strategy, market environment, responsibility and value creation.
The dividend income received by Solidium is paid to the State as fully as possible. Funds from divestment of shares are primarily used to acquire new investments or to strengthen the existing holdings. Solidium’s value to the State is most concrete and visible in the cash flow from profit distribution. However, what best manifests our purpose is the work that we do to develop the portfolio to grow the market value of the holdings in order to outperform peers.