Nokia has sold 3.3% of its business for €844mn to Solidium, the investment arm of Finland's government.
The multinational telco, which is headquartered on the outskirts of the Finnish capital Helsinki, has agreed to the deal a month after announcing better-than-expected fourth quarter results for 2017.
Solidium will see its acquisition of the stake as a coup, with its remit 'to strengthen and stabilise Finnish ownership in nationally important companies'. It put itself in a position to take the stake after selling its 137.1mn shares in Swedish telco Telia last month, a move that generated a reported €523mn worth of capital.
"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."
Solidium now has an equity investment portfolio worth €11bn, with its new Nokia stake making up 11% of the total.