Nokia has received funding from an investment vehicle owned by the State of Finland as the latter looks to support what it called “nationally important” companies.

Solidium revealed it has spent €844 million acquiring 3.3 percent of Nokia’s shares since the beginning of the year.

The fund, which also holds stakes in operator Elisa as well as 10 other Finnish companies, said the investment had become possible after it had divested its holding in Telia.

It made SEK 5.1 billion (€503 million) from the sale of its 3.2 percent stake in Telia last month.

Solidium cited Nokia’s “strong market position combined with broad technological expertise” as reasons for the acquisition, saying these factors provided opportunities for value creation.

Solidium CEO Antti Mäkinen claimed Nokia fitted “perfectly” into its portfolio.

“In line with our mandate, we hereby strengthen and stabilise the domestic ownership in this nationally very important company,” he said.

The news follows Nokia reporting that 2017 revenues fell two percent to €23.15 billion as sales declined across all of the main areas in which it is active.

The company's net loss also widened from €912 million to €1.44 billion on increased income and financial tax expenses.

In a statement accompanying the financials, Nokia CEO Rajeev Suri said 2018 would see the company’s margins come under pressure.

However, he forecast 2019 and 2020 would show improving market conditions due to full scale 5G roll-outs.

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