Nokia Plans EUR 350 Million Sale of ASN Submarine Networks Business to French State

Nokia Plans EUR 350 Million Sale of ASN Submarine Networks Business to French State

(IN BRIEF) Nokia has entered into an agreement to sell its Alcatel Submarine Networks (ASN) business to the French State’s Agence des participations de l’Etat (APE) for EUR 350 million. This strategic move aims to streamline Nokia’s Network Infrastructure portfolio, focusing on core assets and enhancing profitability. Nokia will retain a 20% stake in ASN with board representation until a targeted exit, ensuring continuity and strategic alignment during the transition. The transaction underscores Nokia’s commitment to active portfolio management and positions ASN to continue its leadership in the submarine cable market under stable French State ownership, pending regulatory approvals expected by late 2024 or early 2025.

(PRESS RELEASE) ESPOO, 28-Jun-2024 — /EuropaWire/ — Nokia has announced a significant strategic move involving the sale of its Alcatel Submarine Networks (ASN) business to the French State’s Agence des participations de l’Etat (APE). This transaction, valued at EUR 350 million, includes Nokia retaining a 20% stake with board representation until a targeted exit. The decision reflects Nokia’s strategy of active portfolio management and focuses on core assets within its Network Infrastructure business group. ASN, a leader in submarine communication networks, will benefit from the French State’s long-term stewardship, ensuring continuity for customers, employees, and partners.

Under Nokia’s ownership, ASN has expanded its market presence significantly, capitalizing on the growing demand for subsea cables. The transaction, expected to close by late 2024 or early 2025 pending regulatory approvals, will see ASN continue operations under stable ownership while Nokia enhances focus on its core markets and technological leadership in Network Infrastructure.

Pekka Lundmark, Nokia’s President and CEO, highlighted the strategic rationale behind the divestment, emphasizing the streamlined portfolio’s potential to strengthen operational efficiency and profitability. The move underscores Nokia’s commitment to driving growth and innovation in digital networks while maintaining a strategic interest in ASN’s future through retained ownership.

Alain Biston, CEO of ASN, expressed enthusiasm about ASN’s future under French State ownership, foreseeing opportunities to advance its integrated technology offerings. French Minister of Economy, Bruno Le Maire, welcomed the acquisition as a means to bolster France’s position in the global submarine cable market.

Advisors BNP Paribas, Skadden, and RELIANS provided financial, legal, and strategic advisory services, respectively, throughout the transaction process.

Advisors
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.

About Nokia
At 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 ASN
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.

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 Contact:

Nokia Communications, Corporate
Email: Press.Services@nokia.com

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SOURCE: Nokia