Worawee Meepian
Nokia (NYSE:NOK) Thursday said that it has signed a put option agreement with the French State, contemplating the sale of Alcatel Submarine Networks for €350 million.
Nokia (NOK) said it would retain a 20% shareholding and board representation until targeted exit to ensure a smooth transition.
By divesting ASN, a non-core standalone business for Nokia (NOK), the company can focus its network infrastructure portfolio on growth opportunities in its core markets and further improve profitability of the business group, it said in a statement.
Beginning with the second quarter, Nokia (NOK) expects to account for Alcatel Submarine Networks as a discontinued operation, and going forward, its Network Infrastructure Business Group will comprise three units: Fixed Networks, IP Networks and Optical Networks.
This move is expected to reduce the net sales of Network Infrastructure by approximately €1 billion but will increase its operating profit margin by 100 –150 basis points. This does not impact Nokia’s previously stated financial outlook, disclosed in its Q1 2024 financial report on 18 April 2024.
Source: Press Release