Siemens is reportedly stepping up efforts to sell a stake in its 50/50 NSN joint venture as a clause that prevented a deal without Nokia’s permission expires in April.
The German vendor plans to actively look to cut its 50% stake to less than 20%,…
Siemens is reportedly stepping up efforts to sell a stake in its 50/50 NSN joint venture as a clause that prevented a deal without Nokia’s permission expires in April.
The German vendor plans to actively look to cut its 50% stake to less than 20%, reported the Financial Times citing a source close to the company.
However, the source stopped short of saying there would definitely be an outcome as they reach the milestone in their six-year shareholder agreement, added the report.
Siemens and Nokia declined to comment.
Speculation that NSN’s parents could look to exit the company is nothing new, with them having tried and failed to sell a majority stake in 2011 to private equity.
Siemens and Nokia are also rumoured to be considering listing a part of NSN, although the latter is not thought to be in any rush to leave the venture.
Having been unable to find a buyer when the asset was shopped around two years ago, the vendors were forced to pump in a further €1bn of equity into the venture, and announce a major cost cutting drive. Since then analysts have noted NSN’s return to form, after its restructuring slashed 17,000 staff amid a refocus on mobile broadband.
With its improved outlook, NSN is also rumoured to be planning its first high yield bond to raise approximately €700m, which will be used to pay down debt.
