Govt decides stock-market listing of Altia

The government decided to list the state owned Altia Plc on the Helsinki Stock Exchange, broadening its domestic ownership base and reducing state ownership in the company, said an official press release.

The government will arrange a sale of shares of the Nordic countries' leading alcoholic beverage company operating in the wines and strong alcoholic beverages market.

The shares will be offered to the public.

Altia, wholly owned by the State of Finland, has been operating independently in an internationally competitive environment for years. The listing is a natural next step in the company's growth and development in Finland and abroad.

The listing will give the company better opportunities to meet the challenges of continually intensifying competition.

It will facilitate the company's access to capital markets, broaden the company's ownership base, provide the public with an opportunity to invest in the company, and will enhance the transparency of the company's business as well as the company's recognition and stakeholder interest.

On completion of the listing, the State of Finland will retain at least one third of the company's shares. The government also feels it is important for the Finnish public, domestic and foreign institutions, the company's personnel and the company's extensive cooperation network to acquire interests in the company.

“After a break of two decades, the state owner will once again be able to offer a development path via listing. The decision to create for Altia better growth and development opportunities is a timely act by a responsible owner. All Finns will now have the possibility of owning a stake in a growth story founded on Finnish raw materials. I have full confidence in the company's management, robust finances and good governance in implementing the listing and operating as a listed company,” said Minister of Economic Affairs Mika Lintilä, who is responsible for ownership steering.

Altia's operations are based on barley produced by Finnish farmers, pure Rajamäki groundwater and domestic production. The Koskenkorva plant is an essential part of the company's business and the company also has an extensive network of contract farmers and a large number of other Finnish partners.

The Finnish government announced in October 2017 that it was studying the possibility of listing Altia Plc on the Helsinki Stock Exchange. Implementing the study was the responsibility of the Ownership Steering Department of the Prime Minister's Office, which is also responsible for the ownership steering of Altia Plc.

Altia is the Nordic countries' market leader in wines and strong alcoholic beverages, measured by volume. Altia operates in the Nordic countries, Estonia and Latvia. It also has production in Cognac, France, and it exports to around 30 countries. The company aims to promote a modern, responsible Nordic drinking culture in its operating countries.

“Altia is a brand house and a leading Nordic alcoholic beverage company in the wine and spirits markets. We have a stable market position in our core markets. We have developed our business operations systematically and in line with our strategy, and have turned the Company towards profitable growth. It is important for us to develop our Nordic quality brands and bring new, interesting product innovations to the market. If completed, the contemplated listing would enable strategic flexibility. Moreover,

it would mean more transparency and opportunities to develop the drinking culture in a responsible manner,” Altia CEO Pekka Tennilä said.