Nokia has announced plans to return around EUR 4 billion to shareholders following its planned merger with Alcatel-Lucent. Following of a review of its capital structure and needs, Nokia said its board found the money to return to shareholders and deleverage the balance sheet.
In addition it expects it can achieve the targeted synergies from the merger with Alcatel-Lucent a year earlier than previously forecast. The estimate of EUR 900 million in annual operating cost synergies could be achieved by 2018, a year earlier than forecast in April when the merger was first announced, assuming the merger closes in the first quarter of 2016 as planned.
The shareholder distributions would include dividends of EUR 0.15 per share in 2015 and 2016, a special dividend of EUR 0.10 per share in 2016, and a EUR 1.5 billion share repurchase programme. In addition, Nokia aims to reduce debt by around EUR 3 billion, with an eye on an investment-grade credit rating in the longer term.
