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Nokia to Sell Its Cable Business
March 18, 1996
Nokia has reached agreement with NKF Holding N.V. and ABN AMRO Hoare Govett leading to a sale by Nokia of its approximately 55% shareholding in the Dutch cable industry group NKF Holding N.V. The signing of the final agreements will take place in the course of this week. The total proceeds for Nokia from the divestment of its NKF interest will be above NLG 200 million.
"The deal has a favourable influence on Nokia´s consolidated balance sheet. It is also one of the major steps we have taken in our process to emerge as a focused telecommunications company," says Jorma Ollila, President and CEO of Nokia.
Nokia´s shareholding in NKF first established in 1989, will now come to an end, and Nokia´s presence in this originally Finnish, then European and later worldwide cable industry business will be concluded. After this and the company´s withdrawal from the television business announced in February, Nokia will have nearly 100% of its operations in the telecommunications industry.
"Following our business objectives, we shall now have the structure in place to concentrate on the growth segments of the telecommunications industry. We shall continue to focus on the areas where our competence provides optimum added value to our customers," says Jorma Ollila.
As announced today by ABN AMRO Hoare Govett, an international syndicate of banks managed by ABN AMRO Hoare Govett has launched a secondary offering of the NKF shares to investors.
Commenting on the offering, Jorma Ollila said: "We have every confidence in the business and management of NKF. We believe that the company, one of the major European cable companies, is well-positioned to further its attractiveness as an independant company, and to strengthen its profitability and market share in global operations based on its strong cable industry know-how."
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