Another company on the Helsinki stock exchange plans to split into two listed companies – “The market rewards”

Several companies listed on the Helsinki Stock Exchange have recently announced their intention to split.

“Today’s market rewards you for being focused”, Arvopaperi’s editor-in-chief Ninni Myllyoja evaluate Kauppalehti live In the Talousamau program on Monday.

Most recently, the conglomerate Aspo announced on Monday morning, the division plan approved by the company’s board, with which the subsidiary ESL Shipping will be separated into a new independent listed company. The name of the new company will be ESL Shipping Group, and the current Aspo will be named Telko Group.

Other recent examples are, for example, a forest company Stora Enson intentions separates the Swedish forest assets into its own company and an engineering company I coached considerations separates biomaterial solutions and services and process efficiency solutions into two independent listed companies.

According to Myllyoja, it can be difficult for investors to assess the business of multinational companies.

In addition, it is easier for separate companies to make investment decisions, according to Myllyoja. On the other hand, many funds have also turned into theme funds that favor clear and focused companies, Myllyoja notes.

“In the 1980s and 2000s, it was a bit fashionable to be a multi-sector company. Now a clear strategy and transparent reporting is preferred. That probably has an effect on this, that reporting has increased dramatically. And it’s easier for investors to compare businesses,” Myllyoja reflected on the development.

You can watch Monday’s Economic Morning in its entirety below.