Finnish telecoms operator Elisa has been asked by its largest shareholder Novator for radical changes in their operations. Novator, the investment firm owned by Thor Bjorgolfsson, has asked Elisa for a extraordinary general meeting in order to consider changes to the company.
Novator is suggesting that Elisa reshape its structure and rethink its operations in order to improve shareholder value and increase customer satisfaction.
In a statement released by Novator the company said: “Novator has recommended Elisa’s board divide Elisa into a holding company, responsible for the international growth of Elisa, and a subsidiary handling the daily operations.”
Teemu Saari, an analyst for Glitnir, said that more details would be required in order to determine if Novator’s proposals were feasible. “It seems the owner is tired of the share price not developing as they want… but one should know where Elisa should seek growth abroad,” said Saari.
As part of the changes, Novator is calling for a clarification of Elisa’s corporate structure and goals. Bjorgolfsson, who is the founder and head of Novator, said: “It is clear to us Elisa’s board is not serving the shareholders’ interests and we need to ask for an extraordinary general meeting to tackle this issue with other shareholders.”
In September Elisa’s Chief Executive, Veli-Matti Mattila, made a statement saying that the company’s strategy centred on growth through acquisition.