Neste to protest handing over shares to VAKE

The personnel groups of Neste Corporation have decided on a political protest against the proposal to transfer 16.7 per cent of Neste Ltd’s shares to the State Business Development Company (VAKE).

The government, however, termed the protest apparently directed against the State’s ownership policy, said an official press release.

There is a proposal in connection with the supplementary budget now discussed at Parliament that 16.7 per cent of the shares of Neste Ltd be transferred to the State Business Development Company (VAKE); after this the State would own directly 33.4 per cent of Neste.

The shares are to be transferred to VAKE by the end of this summer. The State has not made a decision on the sales of shares from VAKE.

“I find it regrettable that personnel groups have decided to resort to this kind of measures. They harm the reputation of Neste Ltd among its customers and, in addition, they will have a detrimental effect on the corporation’s share value,” said Mika Lintilä, the minister responsible for ownership steering.

Parliament approved an amendment to the law on ownership steering in early 2017. The revised law defines the ownership limit at 33.4 per cent. It was outlined in the Government Resolution on Ownership Policy on May 13 this year that the State's strategic interest can be secured in Neste Ltd with the blocking minority of 33.4 percent.

Neste is the world's leading supplier of renewable diesel and produces a comprehensive range of major petroleum products.