The Ministry of Transport and Communications Finland has today signed an agreement to sell the entire share capital of Suomen Autokatsastus Oy (Finnish Motor Vehicle Inspection Ltd) based on the authorization from the Finnish Parliament and the decision made by the Government. The buyer is a newly established company, in which MB Funds, a Finnish private equity investor, has majority ownership.
The price for the shares is approximately EUR 59 million including the company’s net cash position. Taking into account the extraordinary dividends paid in connection with the privatization, the Government receives in total approximately EUR 71 million from the transaction. Net asset value of the company is EUR 22 millions. The privatization was carried out through an auction process, in which the Government was advised by Nordea Securities.
Suomen Autokatsastus Oy is the leading company in Finland in the fields of motor vehicle inspection, condition checks, registrations and drivers examinations. In addition, the company carries out motor vehicle inspection operations in Latvia, Poland and Russia. In 2002, the company’s net sales amounted to approximately EUR 62.4 million and the number of employees was more than 1,000. The company’s market share in motor vehicle inspections in Finland is approximately 64 %.
The Motor Vehicle Registrations Center, which carried out vehicle inspections in Finland from 1968 onwards, was renewed to act as a state-owned enterprise in 1993 and further incorporated into a 100 % state-owned company in 1996. The Finnish motor vehicle inspection market was deregulated in 1994 and has evolved into an efficient and competitive business sector. This has had a positive effect on customer satisfaction as well as on the scope and quality of services.
There is no longer need for a state ownership in the sector. Government can now concentrate on its role as the administrative and legislative authority. During the years 1995-2002, the Government has received a total of EUR 25 million from the company.
For further information, please contact:
Minister of Transport and Communications Kimmo Sasi, tel. +358 9 160 28320
Director of Unit Kalevi Alestalo, tel. +358 9 160 28467
Ministerial Adviser Leena Kostiander, tel. +358 9 160 28469
