Nokia shares slip as Finnish government takes stake in telecoms firm

Nokia shares have turned red after earlier gains, as the Finnish government has purchased a 3.3% stake in the telecoms equipment maker.

Nokia shares slip as Finnish government takes stake in telecoms firm

Nokia shares are a little lower Tuesday, as it emerges the Finnish Government has taken a stake in the telecoms equipment maker in order to increase national interest in the business.

The Finnish government’s investment arm – Solidium – has acquired a 3.3% share in the firm, to make up some 11% of Finland’s equity investments.

By 1235 BST, Nokia shares were 0.15% lower at €4.81, after giving back gains made earlier during the trading session. Nokia shares have been climbing steadily higher during 2018 to-date.

Nokia’s “strong market position” appeals

Solidium made the announcement Tuesday, that it had purchased a small percentage of the telecoms equipment maker for €844 million. The investment follows the government’s decision to reduce its stakes in Telia and Sampo, earlier in the year.

“The divestment of our stake in Telia in the beginning of the year made it possible for us to invest into Nokia, which fits perfectly into Solidium’s portfolio,” said Solidium CEO, Antti Mäkinen.

“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,” Mäkinen added.

New Nokia President announced

As Nokia begins to benefit from the new 5G cycle, the Finnish company announced last week it had appointed Sanjay Goel as President of Global Services and member of the Group Leadership Team.

Goel, who works for Nokia as head of Global Services Sales and has been with the firm for some ten years, will begin his new role in April, replacing current Global Services President, Igor Leprince.

"I want to thank Igor for his contributions to Nokia. I warmly welcome Sanjay to the GLT, and look forward to working together to further strengthen Global Services," said Nokia CEO, Rajeev Suri.

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