The number of equity holdings grew to thirteen as Mandatum was separated from Sampo Group.
The return on Solidium’s equity holdings was -4.9 per cent during the past six months. The value of Solidium’s equity holdings decreased during the review period from EUR 7,517 million to EUR 7,078 million.
– The weak return on Solidium’s equity holdings during the review period is explained by three factors: weakened economic outlook, tightening of geopolitical tensions and concentration of Solidium’s portfolio. The weak share price development of a few large holdings is reflected in the total return. We are more optimistic of the future as we see significant opportunities for value appreciation in many of our holdings, says Solidium’s CEO Reima Rytsölä.
Solidium did not execute any share transactions during the review period. However, the number of holdings grew to thirteen as a result of the partial demerger of Sampo. Solidium received in October approximately 33 million Mandatum shares as demerger consideration, representing approximately 6.6 per cent of Mandatum’s outstanding shares.
– The Sampo partial demerger was completed successfully and Mandatum’s journey as an independent listed company begun. After the demerger, we expect Sampo’s market risk to reduce and return on capital to improve. We also see that Mandatum has a solid foundation for success with its strong brand and experienced management, Reima Rytsölä says.
At the end of the review period Solidium paid to the Finnish State approximately EUR 342 million as dividend.
Execution of the renewed strategy ongoing, screening of investment opportunities well underway
Solidium published its renewed strategy in August 2023. Based on it Solidium continues on the path of active ownership, in addition to which the assessment of national importance was updated.
Previously Solidium invested in companies that were of national importance at the time of making the investment. According to the new strategy, Solidium can also invest in companies that are considered to have significant potential to become companies of national importance in the future.
– The execution of the renewed strategy has started well. Many of the same principles apply to investing in growth companies as to investing in mature companies, however, there are some differences. Because of this, we have reorganized internally and developed our investment processes. The screening of investment opportunities is well underway, Reima Rytsölä says.
Further information:
CEO Reima Rytsölä, call-back requests, Inka Virtanen, tel. +358 50 304 7904
Attachments:
Solidium’s half-year report 1.7.-31.12.2023
Solidium is a limited liability 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. Through its stakes, Solidium is a minority owner in thirteen listed companies: Anora, Elisa, Kemira, Konecranes, Mandatum, Metso, Nokia, Nokian Tyres, Outokumpu, Sampo, Stora Enso, Tietoevry and Valmet. The market value of Solidium’s total investments is approximately 7.1 billion euros. Further information: www.solidium.fi/en.
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