Nokia enters into an agreement with the French State regarding the
sale of leading submarine networks business ASN
Press ReleaseNokia 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 Value of EUR 350
million, subject to informing and consulting with relevant employee
representative bodies. This proposal:
- Demonstrates Nokia’s commitment to active portfolio management
and focus on key strategic assets.
- Focuses the portfolio and improves profitability of the Network
Infrastructure business group.
- Ensures continued development of a strategic, market-leading
French and European business.
- ASN is well-positioned to build on the transformation achieved
under Nokia.
- Nokia will retain a 20% shareholding and board representation
until targeted exit to ensure a smooth transition.
27 June 2024Espoo, 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.
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.
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.
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.
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.
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.
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.
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.
Pekka Lundmark, President and CEO of Nokia,
said: “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.”
Alain Biston, President and CEO of ASN,
said: “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.”
Bruno Le Maire, French Minister of Economy,
said: “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.”
AdvisorsBNP 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.
About NokiaAt Nokia, we create technology that
helps the world act together.
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.
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.
About ASNASN, 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.
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.
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.
Media inquiriesNokia Communications,
CorporateEmail: Press.Services@nokia.com
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