Chinese battery maker Contemporary Amperex Technology (SHE:300750, HKG:3750) or CATL will dispose of its 20.6% shareholdings in Finnish carmaker Valmet Automotive due to the downturn in auto sales in Finland, the Finnish government said in a late Monday press release.

The stake will be bought by the state and another investor, Pontos Group.

Around 120 million euros will be used for the financing arrangement, but the purchase price was not disclosed. The state will invest around 35 million euros into Valmet's new capital.

After the completion of the transaction, the state will own 79% of Valmet, while Pontos will hold 21%, the release said.