04.02.2012 13:07
In Finland, the State’s corporate ownership has its roots in economic, industrial and societal policy needs.
In the early 1900s, the State took responsibility for the entrepreneur’s risk because the private sector was not able and/or willing to do so. The State’s corporate activities were aimed, e.g., at the exploitation of raw materials, development of economic infrastructures, establishment of self-sufficiency, safeguarding the financing of business activities and objectives relating to regional policy.
The State-owned companies played a major role in the industrialisation of the country and in the development of the entire national economy.
Now that the industrial basis and infrastructure of the national economy are in place, and tending to the objective of self-sufficiency, and that the needs of the economy do not require the State’s entrepreneurial activities, the roles of most state-owned companies have also essentially changed.
At present, a majority of state-owned companies operate in an international competitive environment in which the conditions for success requires adherence to business principles and maintenance of sufficient competitiveness and profitability. State-owned companies operating on business conditions can no longer be used, in the traditional sense, as instruments for the State’s economic and industrial policy.
Expansion of the ownership base of state-owned companies was started towards the end of the 1980s, but did not become important until 1993. Unlike several other industrial countries, the cornerstone of expansion of the ownership base has not been ideological goals but practical needs, especially securing the capital supply of companies and strengthening of competitiveness by participation in the restructuring of the sector.
Parliament decides in which companies the State may relinquish its sole ownership (100% of votes in the company) or the control of the company (50.1% of votes). The Government decides on State ownership, in other words on the acquisition and sale of shares.
In Finland, the means of privatisation have been equity offerings directed to Finnish and international institutional investors. Also sales of shares to private owners and public offerings to retail investors have been used. The aim has been to connect the issue or sale directed to the personnel with the latter.
In addition to sales of shares, large-scale business restructurings have also been implemented.
Since 1993, the companies have acquired a total of EUR 1.4 billion of venture capital from the market by expanding their ownership bases. The State has received EUR15.8 billion in revenue from selling the State's holdings.
According to the present Government Programme, the revenue from the sale of State property is primarily channelled to paying off government debt. From annual sales revenues exceeding EUR 400 million can 25%, a maximum of EUR 150 million, be channelled to purposes strengthening the economy and growth.
The State has relinquished its ownership in full or at least its controlling interest in the following companies:
|
Televa Oy |
controlling interest in 1981/ |
|
Ajokki Oy |
entire ownership in 1986 |
|
Suomen Malmi Oy |
entire ownership in 1991 |
|
Kokkolan Puhelin Oy |
entire ownership in 1991 |
|
Turun Asennuspaja Oy |
entire ownership in 1991 |
|
Kulinaari-ravintolat Oy |
entire ownership in 1993 |
|
Outokumpu Oyj |
controlling interest in 1994 |
|
VTKK |
controlling interest in 1995 |
|
Veitsiluoto Oy |
entire ownership in 1995 |
|
Valmet Oyj |
controlling interest in 1996 |
|
Oy Sisu Ab |
entire ownership in 1997 |
|
Rautaruukki Corporation |
controlling interest in 1997 |
|
Medivire Työterveyspalvelut Oy |
entire ownership in 2000 |
|
Sponda Plc |
controlling interest in 2000 |
|
Leonia Plc |
controlling interest in 2000 |
|
Avena Oy |
entire ownership in 2002 |
|
Partek Corporation |
entire ownership in 2002 |
|
Inspecta Oy |
entire ownership in 2002 |
|
Finnish Motor Vehicle Inspection Ltd |
entire ownership in 2003 |
|
Engel Group Ltd |
controlling interest in 1999/ |
|
Kemira Oyj |
controlling interest in 2005 |
|
Kapiteeli Oyj |
entire ownership in 2006 |
|
Kemira GrowHow Oyj |
entire ownership in 2007 |
| Santapark Ltd | entire ownership in 2009 |
In addition, ownership base has been expanded e.g. in Kemijoki Oy (in 1997) and in Fortum Corporation (in 1998, 2002 and 2005), of which the latter has been formed by combining Neste Oyj and Imatran Voima Oyj. The State has still controlling interest in these companies.
