Nokia Sells Majority Stake in Submarine Networks to French State

Nokia Press Launch
June 27, 2024

Espoo, Finland – Nokia immediately pronounces it has entered right into a put choice to promote Alcatel Submarine Networks (ASN), a number one submarine networks enterprise, to the French State, represented by the Agence des participations de l’Etat (APE), topic to informing and consulting with the related worker representatives at ASN and Nokia. Nokia will retain a 20% shareholding with board illustration to make sure a clean transition till focused exit, at which level the French State would purchase Nokia’s remaining curiosity.

By divesting ASN, a non-core standalone enterprise for Nokia, Nokia can focus its Community Infrastructure portfolio on development alternatives in its core markets and additional enhance profitability of the Community Infrastructure enterprise group. The transaction demonstrates Nokia’s lively administration of its enterprise portfolio, one of many firm’s six strategic pillars.

Starting with the second quarter, Nokia expects to account for ASN as a discontinued operation. Going ahead, Nokia’s Community Infrastructure Enterprise Group will comprise three models: Fastened Networks, IP Networks and Optical Networks. That is anticipated to cut back the online gross sales of Community Infrastructure by roughly EUR 1 billion however will improve its working revenue margin by 100 –150 foundation factors. This doesn’t affect Nokia’s beforehand said monetary outlook disclosed in its Q1 2024 monetary report on 18 April 2024.

ASN is a French and international submarine communication networks chief, uniquely positioned in turnkey techniques. Below Nokia’s possession, ASN has considerably grown revenues, and is properly positioned to proceed benefiting from the expansion of the big and engaging subsea cables market because the demand for, and significance of, subsea cables has elevated.

The proposed sale of ASN to the French State is the results of intensive discussions which concluded that the French State is probably the most related custodian of ASN. The French State, as a secure proprietor with a long-term curiosity within the operation and upkeep of crucial infrastructure, ensures continuity for ASN prospects, workers, and companions.

Recognizing the significance of ASN’s heritage, operations and relationships with its key stakeholders, the French State has made clear its full assist for ASN’s administration and technique, and has agreed to keep up funding within the ASN enterprise and to assist the additional sustainable growth of its vertically built-in expertise providing.

Because the French State’s shareholdings company, the APE has a big portfolio of holdings throughout a number of industrial sectors, providers and companies, and serves international shoppers. Below the APE’s possession of ASN, the French State will safe the way forward for a robust French and European participant in a globally aggressive market.

The sale is anticipated to shut on the finish of 2024 or starting of 2025, topic to formal session of ASN’s French Works Council and different customary closing circumstances and regulatory approvals.

Pekka Lundmark, President and CEO of Nokia, stated: “It is a good step ahead in our technique of actively managing our portfolio. ASN has been a standalone a part of our Community Infrastructure enterprise and thru the divestment, Community Infrastructure will profit from a streamlined portfolio with a deal with development and strengthening its expertise management. ASN has gone via a big transformation in recent times and has a robust market place. I’m happy we’ve got discovered a pure proprietor for the enterprise. The French State will guarantee continued funding in ASN and safety of crucial trade know-how.”

Alain Biston, President and CEO of ASN, stated: “That is an extremely thrilling second for ASN as we undertake the following section of our growth. The French State’s possession offers us a secure platform to additional develop our vertically built-in expertise providing. This, mixed with Nokia’s retained stake, underscores all events’ aligned pursuits in delivering a clean transition for the advantage of our prospects, suppliers and different stakeholders.”

Bruno Le Maire, French Minister of Financial system, stated: “The French State, represented by the Agence des Participations de l’Etat (French shareholding Company), is thrilled to announce its willingness to amass 80% shareholding of ASN. The Firm is among the world leaders within the submarine cable market, and the one firm of its form in Europe.”

Advisors

BNP Paribas is serving as monetary advisor to Nokia, Skadden is serving as authorized counsel, and RELIANS (Pascal Dupeyrat, Jean-Christophe Martin) is serving as strategic and institutional advisor.

About Nokia

At Nokia, we create expertise that helps the world act collectively.

As a B2B expertise innovation chief, we’re pioneering networks that sense, assume and act by leveraging our work throughout cell, fastened and cloud networks. As well as, we create worth with mental property and long-term analysis, led by the award-winning Nokia Bell Labs.

Service suppliers, enterprises and companions worldwide belief Nokia to ship safe, dependable and sustainable networks immediately – and work with us to create the digital providers and functions of the longer term.

About ASN

ASN, a part of Nokia, leads the trade by way of transmission capability and put in base with greater than 750,000 km of optical submarine cable deployed worldwide, sufficient to circumnavigate the globe 19 occasions.

From conventional Telecom functions to Content material & Over-The-Prime service supplier infrastructures in addition to Vitality functions, ASN gives all the weather of a world turnkey undersea transmission techniques, tailor-made to the person buyer’s wants.

An intensive service portfolio completes its complete providing for the submarine enterprise, together with mission administration, set up and commissioning, together with marine and upkeep operations carried out by ASN’s fleet of cable ships.

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