Finnish government considers privatisation of infrastructure group Destia

The Finnish government is considering selling a stake in its loss-making infrastructure company Destia Ltd, international development minister, Heidi Hautala, told the country’s parliament.

She did not specify the size of the stake that could be divested.

The state’s portfolio also includes rail constructor VR-Track Ltd and according to the minister it is unreasonable for the government to be the sole owner of two infrastructure companies. Hautala added that Destia would be unable to compete in future railroad track projects, whereas a sale would enable it to strengthen its operations.

Destia designs, builds and maintains traffic routes, industrial and traffic environments and complete living environments. Last year it generated sales of EUR500m (USD644.8m) with some 1,600 employees. It competes with companies including Finnish Yit Oyj (HEL:YTY1V), Swedish NCC AB (STO:NCC B) and Skanska AB (STO:SKA B).

The government has not taken a final decision on Destia’s future yet. The potential sale has so far faced opposition from two out of six parties in the ruling coalition.