June 26, 2024 11:03 PM
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press.services@nokia.com
Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN
Nokia announces the sale of its subsidiary ASN to the French State for EUR 350 million, retaining a 20% shareholding to ensure a smooth transition.
Press Release Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN Nokia has signed a put option agreement with the French State contemplating the sale of ASN for an Enterprise Va
June 26, 2024 11:03 PM
-
press.services@nokia.com
Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN
Nokia announces the sale of its subsidiary ASN to the French State for EUR 350 million, retaining a 20% shareholding to ensure a smooth transition.
Press Release Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN Nokia has signed a put option agreement with the French State contemplating the sale of ASN for an Enterprise Va
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<meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="font-family:Arial; font-size:14px"><span style="padding:0px"></span><img src="https://ml-eu.globenewswire.com/Resource/Download/e6523d78-c43a-4057-8aa9-68206d3af4a8?size=1"> <span style="font-size:10pt; font-family:arial,helvetica,sans-serif"> </span> <p style="margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">Press Release</span></p><p style="letter-spacing:-0.5pt; line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="letter-spacing:0pt; font-size:20pt; font-family:'Arial'">Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'"><em><br></em></span> </p><p style="letter-spacing:0.75pt; line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'"><em>Nokia has signed a put option agreement with the French State contemplating the sale of ASN for an Enterprise Value of EUR 350 million, subject to informing and consulting with relevant employee representative bodies. This proposal:</em></span><br></p><ul type="disc"><li style="font-size:11pt; font-family:'Arial'"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'">Demonstrates Nokia’s commitment to active portfolio management and focus on key strategic assets.</span><br></li><li style="font-size:11pt; font-family:'Arial'"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'">Focuses the portfolio and improves profitability of the Network Infrastructure business group.</span></li><li style="font-size:11pt; font-family:'Arial'"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'">Ensures continued development of a strategic, market-leading French and European business.</span></li><li style="font-size:11pt; font-family:'Arial'"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'">ASN is well-positioned to build on the transformation achieved under Nokia.</span></li><li style="font-size:11pt; font-family:'Arial'"><span style="color:rgb(0,0,0); letter-spacing:0pt; font-size:11pt; font-family:'Arial'">Nokia will retain a 20% shareholding and board representation until targeted exit to ensure a smooth transition.</span><br></li></ul><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">27 June 2024</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">Espoo, Finland – Nokia today announces it has entered into a put option to sell Alcatel Submarine Networks (ASN), a leading submarine networks business, to the French State, represented by the Agence des participations de l'Etat (APE), subject to informing and consulting with the relevant employee representatives at ASN and Nokia. Nokia 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.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">By divesting ASN, a non-core standalone business for Nokia, Nokia can focus its Network Infrastructure portfolio on growth opportunities in its core markets and further improve profitability of the Network Infrastructure business group. The transaction demonstrates Nokia’s active management of its business portfolio, one of the company’s six strategic pillars.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">Beginning with the second quarter, Nokia expects to account for ASN as a discontinued operation. 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 EUR 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.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">ASN is a French and global submarine communication networks leader, uniquely positioned in turnkey systems. Under Nokia’s ownership, ASN has significantly grown revenues, and is well positioned to continue benefiting from the growth of the large and attractive subsea cables market as the demand for, and importance of, subsea cables has increased.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">The proposed sale of ASN to the French State is the result of extensive discussions which concluded that the French State is the most relevant custodian of ASN. The French State, as a stable owner with a long-term interest in the operation and maintenance of critical infrastructure, ensures continuity for ASN customers, employees, and partners. </span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">Recognizing the importance of ASN’s heritage, operations and relationships with its key stakeholders, the French State has made clear its full support for ASN’s management and strategy, and has agreed to maintain investment in the ASN business and to support the further sustainable development of its vertically integrated technology offering.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">As the French State’s shareholdings agency, the APE has a large portfolio of holdings across multiple industrial sectors, services and businesses, and serves global clients. Under the APE’s ownership of ASN, the French State will secure the future of a strong French and European player in a globally competitive market. </span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">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.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'"><strong>Pekka Lundmark, President and CEO of Nokia, said:</strong></span><span style="font-size:11pt; font-family:'Arial'"> “This is a good step forward in our strategy of actively managing our portfolio. ASN has been a standalone part of our Network Infrastructure business and through the divestment, Network Infrastructure will benefit from a streamlined portfolio with a focus on growth and strengthening its technology leadership. ASN has gone through a significant transformation in recent years and has a strong market position. I am pleased we have found a natural owner for the business. The French State will ensure continued investment in ASN and protection of critical industry know-how.”</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'"><strong>Alain Biston, President and CEO of ASN, said:</strong></span><span style="font-size:11pt; font-family:'Arial'"> “This is an incredibly exciting moment for ASN as we undertake the next phase of our development. The French State’s ownership gives us a stable platform to further develop our vertically integrated technology offering. This, combined with Nokia’s retained stake, underscores all parties’ aligned interests in delivering a smooth transition for the benefit of our customers, suppliers and other stakeholders.”</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'"><strong>Bruno Le Maire, French Minister of Economy, said:</strong></span> <span style="color:rgb(29,30,32); font-size:11pt; font-family:'Arial'">“</span><span style="font-size:11pt; font-family:'Arial'">The French State, represented by the Agence des Participations de l’Etat (French shareholding Agency), is thrilled to announce its willingness to acquire 80% shareholding of ASN. The Company is one of the world leaders in the submarine cable market, and the only company of its kind in Europe.”</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'"><strong>Advisors</strong></span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">BNP Paribas is serving as financial advisor to Nokia, Skadden is serving as legal counsel, and RELIANS (Pascal Dupeyrat, Jean-Christophe Martin) is serving as strategic and institutional advisor.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="color:rgb(29,30,32); font-size:11pt; font-family:'Arial'"><strong>About Nokia</strong></span><br><span style="font-size:11pt; font-family:'Arial'">At Nokia, we create technology that helps the world act together.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="color:rgb(29,30,32); font-size:11pt; font-family:'Arial'"><strong>About ASN</strong></span><br><span style="font-size:11pt; font-family:'Arial'">ASN, part of Nokia, leads the industry in terms of transmission capacity and installed base with more than 750,000 km of optical submarine cable deployed worldwide, enough to circumnavigate the globe 19 times. </span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">From traditional Telecom applications to Content & Over-The-Top service provider infrastructures as well as Energy applications, ASN provides all the elements of a global turnkey undersea transmission systems, tailored to the individual customer's needs. </span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'">An extensive service portfolio completes its comprehensive offering for the submarine business, including project management, installation and commissioning, along with marine and maintenance operations performed by ASN’s fleet of cable ships.</span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="color:rgb(29,30,32); font-size:11pt; font-family:'Arial'"><strong>Media inquiries</strong></span><br><span style="font-size:11pt; font-family:'Arial'">Nokia Communications, Corporate</span><br><span style="font-size:11pt; font-family:'Arial'">Email: </span><a href="#" rel="nofollow" target="_blank" style="text-decoration:none"><span style="color:rgb(0,0,255); font-size:11pt; font-family:'Arial'"><u>Press.Services@nokia.com</u></span></a></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"><span style="font-size:11pt; font-family:'Arial'"><strong>Follow us on social media</strong></span><br><span style="color:rgb(0,0,0); font-size:11pt; font-family:'Arial'"><a href="#" rel="nofollow" target="_blank" style="color:rgb(0,0,0); text-decoration:none">LinkedIn</a></span><span style="font-size:11pt; font-family:'Arial'"> </span><span style="color:rgb(0,0,0); font-size:11pt; font-family:'Arial'"><a href="#" rel="nofollow" target="_blank" style="color:rgb(0,0,0); text-decoration:none">X</a></span><span style="font-size:11pt; font-family:'Arial'"> </span><span style="color:rgb(0,0,0); font-size:11pt; font-family:'Arial'"><a href="#" rel="nofollow" target="_blank" style="color:rgb(0,0,0); text-decoration:none">Instagram</a></span><span style="font-size:11pt; font-family:'Arial'"> </span><span style="color:rgb(0,0,0); font-size:11pt; font-family:'Arial'"><a href="#" rel="nofollow" target="_blank" style="color:rgb(0,0,0); text-decoration:none">Facebook</a></span><span style="font-size:11pt; font-family:'Arial'"> </span><span style="color:rgb(0,0,0); font-size:11pt; font-family:'Arial'"><a href="#" rel="nofollow" target="_blank" style="color:rgb(0,0,0); text-decoration:none">YouTube</a></span></p><p style="line-height:13.8pt; margin-top:0pt; margin-bottom:0pt"> </p><hr><div style="font-family:Arial,Helvetica,sans-serif; text-align:center; margin-top:15px; color:#aba8a8; font-size:11px">This message was sent to user@example.com.<br>If you wish to no longer receive these messages you can <a href="#">unsubscribe</a>.</div><img src="https://contacts-eu.globenewswire.com/Ros/TrackEmailOpen?recipientId=base64v2%3aaNLSpr%2fMybCEIxurcUVZ1qgd%2braQ6si2EBGi2TcE684Ykobfe9O%2bpzifuWk%2ffCSs" width="1" height="1" style="display:none"> </body></html>
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