EU TECHNOLOGY: TECHNOLOGY: Nokia Reportedly Exploring Mobile Networks Deal With Samsung
Aug-29 13:02
Ba1/BBB-/BBB- EUR 28s ~2bp tighter on the news
Mobile networks represent close to half of the issuer’s revenue so any deals involving the unit could have a large impact. No change of control language in their docs. They already have a net cash position of EUR 5.5bn so any proceeds would likely be redeployed into new growth opportunities though this would be a positive given their recent underperformance.
- BBG sources report that Nokia's mobile networks unit, reportedly valued at USD ~10bn, is exploring strategic options, including a potential sale, spin-off, or merger involving some or all of the unit.
- Samsung has reportedly shown preliminary interest in acquiring some assets to enhance its position in the RAN market.
- Deliberations described as early stage with no certainty of any transaction.
- Unit accounted for ~44% of the group’s FY23 revenue though has been under pressure as telcos have delayed CapEx and amidst competition from Huawei/Ericsson.
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Jul-30 12:42
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