Nokia To Sell Submarine Network Business To France For Enterprise Value Of EUR 350 Mln

(RTTNews) - Nokia (NOK) announced that it has entered into a put option to sell Alcatel Submarine Networks or ASN, its submarine networks business, to the French State represented by the Agence des participations de l'Etat, for an Enterprise Value of 350 million euros.

Nokia said it will retain a 20% shareholding with board representation to ensure a smooth transition until targeted exit, at which point the French State would acquire Nokia's remaining interest.

By divesting ASN, a non-core standalone business for Nokia, Nokia can focus its Network Infrastructure portfolio on growth opportunities in core markets and further improve the profitability of the Network Infrastructure business group.

Going forward, Nokia's Network Infrastructure Business Group will comprise three units: Fixed Networks, IP Networks and Optical Networks. This is expected to reduce the net sales of Network Infrastructure by approximately 1 billion euros but will increase its operating profit margin by 100 -150 basis points. This does not impact Nokia's previously stated financial outlook disclosed, the company said.

ASN is a French and global submarine communication networks leader, uniquely positioned in turnkey systems.

The sale is expected to close at the end of 2024 or beginning of 2025, subject to formal consultation of ASN's French Works Council and other customary closing conditions and regulatory approvals.

Earlier today, Nokia said it agreed to acquire Infinera (INFN) in a transaction valuing the company at $6.65 per share or an enterprise value of US$2.3 billion.

The transaction represents a premium of 28% to Infinera's share price at the close of 26 June 2024. At least 70% of the consideration will be paid in cash and Infinera's shareholders can elect to receive up to 30% of the aggregate consideration in the form of Nokia ADSs.

For each Infinera share, Infinera shareholders will be able to elect to receive either: $6.65 cash, 1.7896 Nokia shares or a combination of $4.66 in cash and 0.5355 Nokia shares for each Infinera share.

It is targeted to close the deal during the first half of 2025.