Siemens Seeking Buyer for Nokia Siemens Networks
Published on: 17th Jun 2013
Note -- this news article is more than a year old.
Germany's Siemens has approached a number of private equity groups to seek a buyer for Nokia Siemens Networks joint venture.
It is also possible that Siemens could sell just its 50% stake in the company, but investors may be wary as Nokia retains management control of the company.
Siemens is able to sell its 50% stake to an outside buyer without permission from Nokia after its five-year veto expired earlier this year.
Citing sources familiar with the talks, the Wall Street Journal said that the company would have a valuation of around USD9.4 billion including debt.. A sale would also be doubly beneficial for Nokia as it currently accounts for the joint-venture's debt on its own accounts.
The two companies set up the joint-venture in 2007, but it has struggled in recent years and underwent a substantial downsizing exercise last year. That effort has however turned the company around and it is expected to turn a profit within the year.
A sale now would mean that the two shareholders pumped lots of money into the company, and then sold it on the cusp of generating a return on their investment.
On the web: Wall Street Journal
Tags: nokia siemens networks