Nokia Siemens Networks looks to spark investment and raise €700 million
Both Nokia and Siemens have a joint venture branded Nokia Siemens Network, which provides telecoms equipment in a number of supported markets. According to those familiar with future plans, Nokia Siemens Networks plans to raise as much as €700 million from public markets in spring 2013. This is said to help write off current debt while funding required investment.
This high-yield bond will mark the first time Nokia and Siemens have taken the joint venture into the public markets and will trial just how much interest is sparked with investors in the company ahead of a potential listing. We've previously looked at the performance of Nokia Siemens Network in quarterly financial reports released by the Finnish mobile device manufacturer.
In the latest report for Q4 2012, which was published just last two weeks ago, Steven Elop commenting the following:
"We are pleased that Q4 2012 was a solid quarter where we exceeded expectations and delivered underlying profitability in Devices & Services and record underlying profitability in Nokia Siemens Networks. We focused on our priorities and as a result we sold a total of 14 million Asha smartphones and Lumia smartphones while managing our costs efficiently, and Nokia Siemens Networks delivered yet another very good quarter."
Nokia Siemens Network has been turned around through cost-cutting measures, as well as improved sales of higher margin network equipment gear to mobile operators investing in 4G networking. With the continued expansion of the faster mobile data service, the company is in a comfortable position with the horizon of further custom available on a global scale as the mobile industry pushes forward.
It's reported that Analysts have stated the unit may be an attractive proposition for public investors, as well as private equity firms. Estimations were revealed earlier this month to be well above €5 billion. While not Windows Phone related, this is good news for those who follow Nokia closely.
Source: Financial Times