Nokia has signed a put option agreement with the French State, represented by the Agence des Participations de l’Etat (APE), to sell Alcatel Submarine Networks (ASN), its leading submarine network business, for an enterprise value of 350 million euros. This transaction is subject to consultation and information to ASN and Nokia employee representatives. As part of the agreement, Nokia will retain a 20% stake and representation on the board until its final exit to ensure a smooth transition.
This move reaffirms Nokia’s commitment to actively managing its portfolio and focusing on key strategic assets. The sale of ASN will allow Nokia to focus its Network Infrastructure portfolio on growth opportunities in its core markets and enhance group profitability. Starting from the second quarter, Nokia expects to account for ASN as a discontinued operation.
ASN, a global leader in submarine communication networks, has experienced significant growth under Nokia’s ownership and is well positioned to continue benefiting from the growing submarine cable market. The proposed sale to the French State comes after extensive discussions that concluded that the French State is the most suitable custodian for ASN, ensuring continuity for its customers, employees, and partners.
The sale, expected to close by late 2024 or early 2025, is subject to formal consultation with the French Workers’ Council of ASN and other customary closing conditions and regulatory approvals.
Pekka Lundmark, President and CEO of Nokia, commented: “This is a positive step in our portfolio management strategy. ASN has been a standalone part of our Network Infrastructure business, and through divestment, Network Infrastructure will benefit from a more focused portfolio on growth and strengthening its technological leadership. I am pleased to have found a natural owner for the business. The French State will ensure ongoing investment in ASN and protection of critical industry know-how.”
Alain Biston, President and CEO of ASN, stated: “This is an incredibly exciting time for ASN as we embark on the next phase of our development. The ownership by the French State provides us with a stable platform to further develop our vertically integrated technological offering.”
Bruno Le Maire, French Minister of Economy, declared: “The French State, represented by the Agence des Participations de l’Etat, is pleased to announce its intention to acquire 80% of ASN. The company is a global leader in the submarine cables market and the only company of its kind in Europe.”
Advisors: BNP Paribas is acting as Nokia’s financial advisor, Skadden as legal advisor, and RELIANS (Pascal Dupeyrat, Jean-Christophe Martin) as strategic and institutional advisor.
About Nokia: At Nokia, we create technology that helps the world act together. As a leader in B2B technological innovation, we are at the forefront of networks that sense, think, and act, leveraging our work in mobile, fixed, and cloud networks. Additionally, we create value through intellectual property and long-term research led by the award-winning Nokia Bell Labs.
About ASN: ASN, part of Nokia, leads the industry in terms of transmission capacity and installed base with over 750,000 km of optical submarine cable deployed worldwide. From traditional telecommunications applications to content and OTT service provider infrastructures, as well as energy applications, ASN provides all the elements of a global turnkey submarine transmission system tailored to individual customer needs.