Nokia Siemens Networks plans to raise $930 million: report

21 Jan 2013

1

Rajeev SuriStruggling telecoms equipment maker Nokia Siemens Networks (NSN) is planning to raise around €700 million ($930 million) through the sale of high-yield bonds in order to pay back drawn debt and fund investment, Financial Times yesterday reported, citing people familiar with the plan.

According to the report the bond sale will take place this spring, which will be the first entry into the public markets.

NSN, the world's second-largest maker of telecommunications equipment, which is  jointly owned by Nokia and Siemens, had last July abandoned plans of selling itself after private-equity firms came with a "low-ball "offer.

Officially launched at the 3GSM World Congress in Barcelona in February 2007 to compete against Ericsson and Chinese rival Huawei Technologies, NSN has been struggling to generate profit having posted losses for two years.

NSN, which holds a 13.2-per cent market share, had in 2011 undertaken a massive global restructuring program and said that it would cut 17,000 jobs by 2013 in order to save €1 billion in costs.

Since then the company, headed by Rajeev Suri, has sold non-core assets, including its optical fibre unit to Marlin Equity Partners and its fixed-line broadband access business to Adtran

The restructuring seems to be paying off with NSN generating positive cash flow for three straight quarters, which has given investors enough confidence in the company ahead of a possible listing.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers