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Finland sells 5 pc stake in Neste for USD 1 bn

The sale was announced late on Tuesday and followed parliament's permission from last year for the government to cut the previously controlling stake to a minimum of 33.4 percent.


Reuters Last Updated at 13-06-2018 13:14:13 IST Finland
Finland sells 5 pc stake in Neste for USD 1 bn
  • Neste has benefited from its profitable biofuel business, which has plants in Singapore and Rotterdam, and is looking to expand its capacity. It also has two conventional refineries in Finland. (image Credit: Twitter)

The State of Finland sold a stake of 5 percent in the oil refinery and biofuel company Neste in an accelerated bookbuild offering for 861 million euros ($1.0 billion), the government said in a statement.

The sale was announced late on Tuesday and followed parliament's permission from last year for the government to cut the previously controlling stake to a minimum of 33.4 percent.

As a result of the sale, the state's stake fell to 44.7 percent. A government source told Reuters that there were no plans to trim the stake further.

The government cited the stock's strong performance and the increased weight of the energy sector in the state's asset portfolio.

"The state will continue to be a significant shareholder of the company, which will, among other things, ensure the strategic interest relating to the ownership," Minister of Economic Affairs Mika Lintila said in a statement.

The sale price was 67.27 euros per share, compared with the closing price of 69.18 euros.

The shares opened 4 percent lower at 66.56 euros -- but still up about 90 percent from a year earlier.

Neste has benefited from its profitable biofuel business, which has plants in Singapore and Rotterdam and is looking to expand its capacity. It also has two conventional refineries in Finland.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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