Nokia to Sell Submarine Networks Business to French government in EUR350 Million Deal

By Dominic Chopping

Nokia agreed to sell its Alcatel Submarine Networks business to the French state in a deal that values the company's equity and debt at 350 million euros ($373.8 million).

The Finnish network equipment maker said Thursday that it signed a put option agreement that would see it sell the non-core underwater cable business, allowing it to focus its network infrastructure portfolio on growth opportunities in core markets and further improve its profitability.

"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," said Nokia Chief Executive Pekka Lundmark.

ASN has over 750,000 kilometers of optical submarine cable deployed worldwide, catering mainly to the offshore oil and gas industry, providing project management, installation and commissioning, along with marine and maintenance operations through its fleet of cable ships.

The deal will see the French state initially acquire 80% of ASN, before eventually acquiring Nokia's remaining 20% stake.

The sale is expected to close at the end of 2024 or beginning of 2025, subject to regulatory approvals.

The deal is expected to reduce net sales of network infrastructure by around EUR1 billion but will increase its operating profit margin by 100-150 basis points and it doesn't impact Nokia's previously announced financial outlook, it said.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

June 27, 2024 03:13 ET (07:13 GMT)

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