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Rearrangements in Nokia's Cable Industry
December 15, 1995
Nokia, following its business objectives to further focus on telecommunications and related electronics industry, has made a preliminary agreement to sell its holding in the Finland based Nokia Cables group to NKF Holding N.V. The agreement will be retroactively effective as from January 1st, 1995.
Nokia has a 55 per cent holding in NKF Holding N.V., a Dutch cable company listed on the Amsterdam Stock Exchange. As part of this agreement Nokia will reduce its shareholding in NKF to less than 50 per cent through sale to investors.
"The deal concludes Nokia's long-term work to develop a strong focused European cable industry group. Following the rearrangements NKF will emerge as one of Europe's major specialized cable companies with global operations. NKF has strong cable know-how both in energy transmission and telecommunications, and has, due to its competitiveness, the opportunity for continued success as an independent listed company", says Mr Jorma Ollila, President and CEO of Nokia.
Nokia believes that the agreement will enhance the appeal of the NKF shares.
"Centrally managed this group, formerly part of Nokia General Communications Products business group, will have good opportunities to grow and further improve its profitability, which has already been good when compared to the cable industry as a whole", says Mr Jorma Ollila.
The net sales of Nokia Cable Industry totalled FIM 3.3 billion in 1994, of which NLG 742 million (approx. FIM 2 billion) was attributable to NKF.
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