Siemens Looking to Sell its 50% Stake in NSN This Year
Published on: 1st Apr 2013
By: Ian Mansfield
Siemens has confirmed that it is looking to sell its stake in the Nokia Siemens Networks joint venture with Nokia later this year
The joint-venture agreement that formed the company in 2007 is due to expire later this year and Siemens has long suggested that it would prefer to sell than remain a shareholder.
Siemens' CFO, Joe Kaeser told a web conference recently that "2013 will be the time for Siemens to help NSN to move into a better space,"
He also confirmed sale rumours when he said that "This is not a business that we have any aspiration to stay in,"
Quite how and when Siemens would look to dispose of its stake in the company was not clear, but he did confirm that the deadline of next month for the renewal of the joint-venture agreement was not a hurdle to keeping the company going as a single entity.
Once the joint-venture agreement expires, then either side will be free to sell their stake to an outside buyer. However, previous attempts to find a third shareholder looking to buy into the company in the past have all foundered.
Although Nokia already accounts for NSN's debt on its own accounts due to it having management control, the company is not expected to want to add to its debt through a buyout of its partner.
Tags: [nokia siemens networks]