Nokia closes sale of device unit to MS

28 Apr 2014
00:00

Nokia has formally completed the sale of its devices and services business to Microsoft, and revealed it expects to get a little more out of the deal than originally planned.

In a statement, Nokia said the estimate of adjustments made on the deal based on its working capital and cash earnings came out slightly positive for the company.

As a result, Nokia “currently expect[s] the total transaction price to be sightly higher than the earlier-announced transaction price of €5.44 billion ($7.53 billion) after the final adjustments are made.”

Nokia and Microsoft have meanwhile devised a temporary solution to the problem of the former's Chennai handset manufacturing facility, which is embroiled in a tax dispute with Indian authorities that had threatened to delay the transaction.

The facility, which is subject to an asset freeze as a result of the tax proceedings, will remain owned by Nokia. The companies have worked out an arrangement where Nokia will produce devices for Microsoft using the facility. The pair have not disclosed plans for the facility after the dispute is resolved.

Another manufacturing facility in South Korea has also been excluded from the final deal, and will be shut down. The plant currently employs 200 staff.

Nokia said it will offer financial assistance and other support to the workers of both the Chennai and South Korea plants, to help them find work outside of the company.

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