Serving Coffee to Acquaintances: A Social Gathering Experience

Serving Coffee to Acquaintances: A Social Gathering Experience

Erkki Sinko, who holds a significant stake in Reka Industrial, has voiced his approval for the company’s decision to distribute a record dividend to its shareholders. He believes it to be a suitable course of action considering the company’s recent financial gains.

Erkki Sinko is one of the largest owners of the investment company, Reka Industrial. He has applauded the decision made by the company to distribute a part of its capital gains to its shareholders in the form of dividends. He considers this to be a strategic move that is beneficial for both the company and its shareholders.

Reka’s board of directors has proposed a dividend payout of EUR 2.00 per share for the financial year 2023. Based on the current share price, the dividend yield will increase to around 30 percent. This substantial increase makes Reka one of the most generous dividend payers on the Helsinki Stock Exchange.

The dividend will be financed from the profits generated from the sale of Reka Industrial’s subsidiary, Reka Kaapeli. The company was sold to a French cable and optical fiber group, Nexansille, for a sum of 53 million euros.

From the dividend payout, Sinko is set to receive a sum of over 120,000 euros. He currently owns 62,000 Reka shares, a significant stake in the company.

Sinko has been vocal about his satisfaction with the dividend return. His significant return on investment has not gone unnoticed by his acquaintances, leading him to jokingly offer to treat them to coffee on three occasions, with two more treats in the pipeline.

Sinko’s share in the company represents a significant percentage of its total shares. He believes in rewarding loyal shareholders and commends Reka for its strategic moves in the fiercely competitive cable industry.

Sinko refers to the Italian cable giant Prysmianin, who has made a substantial investment of more than 220 million euros in building a submarine cable in Kirkkonummi. The project, upon completion, will see the construction of a massive submarine cable manufacturing tower, surpassing the height of Tampere’s Näsinneulanki.

According to Sinko, Reka has learned from its past business ventures and has grown to be a cautious company. Despite unsuccessful ventures in the past, such as building factories and viscose fiber production, the company has managed to survive and prosper.

Sinko states that while the company has been actively searching for new investment opportunities, no suitable options have been found. As such, he believes it is the right decision for the company to distribute a record dividend to its shareholders.

At the end of the fiscal year 2023, Reka’s cash and other financial assets totaled EUR 38.5 million, a significant increase from EUR 0.8 million in the same period of the comparison year. The company is planning to distribute approximately EUR 12.0 million in dividends.

Following the sale of its cable business, Reka Industrial still operates in the technical rubber business with its subsidiary, Reka Kumi. The company manufactures and supplies rubber products to equipment manufacturers in the transport and engineering industries.

Sinko is optimistic about the company’s future growth in the rubber business. He confirms that they are working diligently to achieve this goal.

Reka is currently in the process of renewing its business strategy. The company’s management has not provided a specific timeline as to when the strategy development and determination of the company’s future direction will be completed.

Sinko, expressing his confidence in the company’s management, states that he will accept the dividends and keenly observe the next moves of Reka’s primary owner and management.

One thought on “Serving Coffee to Acquaintances: A Social Gathering Experience


Comments are closed.