Nokia to pay EUR 1.7 bln for rest of Nokia Siemens Networks

News Wireless Global 1 JUL 2013
Nokia to pay EUR 1.7 bln for rest of Nokia Siemens Networks

Nokia has entered into a definitive agreement to pay EUR 1.7 billion to buy Siemens’ 50 percent of mobile infrastructure equipment joint venture Nokia Siemens Networks. The transaction includes EUR 500 million borrowed from Siemens, to be paid back a year after completion. Nokia has secured bank financing for the EUR 1.2 billion cash portion. The transaction has been approved by the two companies’ boards and is expected to close before the end of September. NSN will become a wholly-owned Nokia subsidiary.

Siemens will continue to strengthen its focus on energy management, industry, infrastructure and healthcare, said CFO Joe Kaeser. Nokia plans to keep existing management, with Rajeev Suri as CEO and Jesper Ovesen as executive chairman of the board, whose membership will be adjusted to reflect the changed ownership. Nokia and NSN plan to confirm the new name and brand at the closing of the transaction.

Nokia estimates that it had gross cash of EUR 9.2-9.7 billion and net cash of EUR 3.7-4.2 billion at the end of the second quarter.

Categories:

Mobile

Companies:

Nokia,  Siemens,  Nokia Siemens Networks

Regions:

Global

Tags:

Network equipment, Wireless, Wholesale, Finance, M&A buyouts & divestments

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