Tuesday, May 30, 2023

With old phone shares, an account has been created in Mikkeli – about 4,000 euros per share


The day of reckoning will come for the families and large owners of Lancy-Savo, when the co-operative ceases to operate.

Mikkeiläinen MPY Osusukunta plans to sell its subsidiaries MPY Telecom and MPY Yeritispälvelut.

The purchase price, which will add up to a total of 75 million euros, is to be distributed to the co-operative’s thousands of shareholders. This means a day of reckoning for the shareholders in thousands of Euros.

MPY Telecom, which operates fiber optic networks and telemasts, is bought by investment company Infranode. MPY Yrityspalvelut, which provides information technology services, will in turn be bought by Tietokeskus Finland, which operates in the same sector.

MPY Telecom has more than 13,000 fiber optic customers, mostly in the Mikkeli region. In addition, MPY Telecom has 106 telemasts which are leased to operators.

According to MPY Osuuskunna, MPY Telecom is well positioned to grow outside the Mikkeli region as the fiber market grows. However, this requires new capital, which has to be introduced by the new owner.

– The fiber optic market is growing strongly and there is really stiff competition. Reijo Karhainen, chairman of the board of the MPY cooperative, says that while last year about 120 million was invested in optical fiber in Finland, 220 million will be invested this year.

In the same time frame, MPY’s fiber investment has grown from a few million to sixteen million. According to Karhinen, it was visible that the growth of investment in the coming years would exceed the MPY’s budget.

– There is demand in the market, but our capital is not enough, says Karhinen.

According to him, the business has been rubbing off for a long time. Interviews were held with approximately one hundred potential buyers, some of whom were international operators.

After submission of bids, there were about a dozen bidders with whom further discussions took place.

Adjusted for debt and expenses related to the sale, the purchase price is approximately 4,000 euros per member share.

According to the board of MPY Cooperative Society, the money is to be distributed in phases to the owners. The total number of owners of MPY is approximately 7,909, and they hold 16,506 shares.

The majority of the purchase price will be already distributed at the end of the year. The funds to be distributed mostly live in the Etela Savo area. The largest group of owners are individual families from the Mikkeli region, who own more than 80 percent.

Background is the history of the company. In 2003, Mikkelin turned into the Puhelinihidists MPY cooperative and with it, the members of the union became members of the cooperative.

Over the years, investors have also acquired shares. However, the largest single shareholder is Lanci-Savo Oy and the second largest is the city of Mikkeli.

The largest individual owners include local investor Seppo Vertinen, who says he is very satisfied with the purchase price. He owns over 300 shares, accumulated over twenty years.

– I thought the price would be a few thousand euros per share. MPY Telecom, which has a lower turnover, was paid 65 million, which is quite outrageous, Vartienen says.

– If there are 13,000 fiber subscription customers, it makes about five thousand euros per subscription.

The MPY Cooperative’s total sales last year were around 37 million euros. The group employs over 160 people, who will be transferred to serve the new owners.

The sale proposal will be displayed to the board at the extraordinary meeting of the MPY Cooperative on June 27.

MPY’s intention to sell was first reported by Länsi-Savo.

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