Nokia is ready to pay at least EUR 355 million to India's tax authorities to enable the transfer of a factory in the country to Microsoft, two people familiar with the matter told Bloomberg. Nokia is willing to deposit at least EUR 270 million on top of an already announced amount of EUR 85 million if India's government allows the shifting of assets including the manufacturing plant in Chennai, said the people.
The assets were frozen in September because of a tax dispute. Earlier that month, Nokia agreed to sell its mobile-phone business to Microsoft in a EUR 5.44 billion transaction to focus on network equipment. Nokia might need to find a new buyer for the assets, which are part of the handset unit, unless it can start the transfer this week, the people said.
Nokia said it is committed to getting its assets unfrozen and called on India's government and tax agency to work with urgency toward a solution. The company's factory in India, which was started in 2006, may not transfer to Microsoft when the deal is completed in the first quarter if the freeze continues beyond 12 December, Nokia said in a separate statement.
