Resolutions of the Extraordinary General Meeting: extra profit distribution of EUR 440 million to the State
The Extraordinary General Meeting of Solidium Oy was held in Helsinki on 4 March 2015. The Extraordinary General Meeting resolved, in accordance with the proposal of the Board, that a profit distribution of EUR 440 million as repayment of capital will be paid to the State of Finland.
Decrease of holding in TeliaSonera and Outokumpu, increase of holding in Metso and Outotec
As announced on 11 February 2015, Solidium sold 200 million shares in TeliaSonera AB in an accelerated bookbuilt offering. The sales proceeds totalled EUR 1,069 million and the pre-tax gain was EUR 363 million. Following the offering, Solidium’s holding in TeliaSonera decreased from 7.8 per cent to 3.2 per cent of the outstanding shares.
Solidium’s holding in Outokumpu Oyj decreased from 29.8 per cent to 27.3 per cent in February, as Solidium sold 10.7 million shares to the market for a total consideration of
EUR 62 million. The pre-tax gain was EUR 11 million, as the shares were valued at market price (EUR 4.77 per share) in Solidium’s interim financial statements as of 31 December 2014 according to Solidium’s accounting principles.
Solidium has increased its holding in Metso from 11.7 per cent to 12.1 per cent during the early part of the year by acquiring shares with a total consideration of EUR 18.5 million from the market. In addition, Solidium has increased its holding in Outotec from 11.0 per cent to 12.4 per cent during the early part of the year by acquiring shares with a total consideration of EUR 13.4 million from the market.
Kari Järvinen, Managing Director of Solidium Oy, comments the profit distribution and the events in the portfolio:
“We have now released substantial amount of capital for the needs of our owner. Solidium has in the recent years paid profit distribution significantly in excess of the dividend income from our portfolio companies. This has been enabled by disposals of holdings, which has resulted in a clear and permanent decline of the annual dividend income.
The strong development of the stock market has, however, maintained Solidium’s ability to operate and we continue to execute our mission: strengthening and stabilising Finnish ownership in nationally important companies with the goal of increasing the value of our holdings in the long run. During the early part of this year we have strengthened our holdings in two important technology companies, Metso and Outotec.
In late 2013 we took part in executing the structural and financial arrangements of Outokumpu and, as a result, our holding in Outokumpu increased from 21.8 per cent to 29.9 per cent. Increasing the holding and the share subscription corresponding to the incremental shares in the company’s share issue meant an additional investment of EUR 62 million for Solidium. Along with the improved performance and valuation level of Outokumpu the incremental stake has tripled in value, and by selling one third of these shares, we could realise an amount equalling to the additional investment made. In addition, we continue to hold most part of the incremental shares, currently worth some EUR 135 million. Our current holding in Outokumpu totals 27.3 per cent of the company’s shares, equal to some EUR 670 million in value.”
Further information: Kari Järvinen, Managing Director, tel. +358 (0)10 830 8905
Solidium is a limited company wholly owned by the State of Finland. Its mission is to strengthen and stabilise Finnish ownership in nationally important companies and increase the value of its holdings in the long term. Its investment activities are based on financial analysis. The basis and core objective of Solidium’s investment strategy is proper, value-enhancing asset management of its current holdings. Through its stakes, Solidium is a minority owner in twelve listed companies: Elisa, Kemira, Metso, Outokumpu, Outotec, Sampo, SSAB, Stora Enso, Talvivaara Mining Company, TeliaSonera, Tieto and Valmet. The market value of Solidium’s investments is approximately EUR 7.4 billion as of the date of this press release. More information: www.solidium.fi.