Nokia Streamlines Network Business: Sells Submarine Networks Business ASN To French State
Portfolio Pulse from Lekha Gupta
Nokia (NYSE:NOK) is selling its Alcatel Submarine Networks (ASN) business to the French State for EUR350 million. Nokia will retain a 20% stake and board representation. The sale is expected to close by late 2024 or early 2025. This move will streamline Nokia's Network Infrastructure Business Group and is expected to reduce net sales by EUR 1 billion but increase operating profit margin by 100-150 basis points. The sale does not impact Nokia's financial outlook for 2024.
June 27, 2024 | 12:22 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Investors can gain exposure to Nokia's stock via the IShares U.S. Digital Infrastructure And Real Estate ETF (NYSE:IDGT). The sale of ASN is expected to streamline Nokia's business and improve profit margins.
The sale of ASN is a positive development for Nokia, which is a component of the IDGT ETF. This could lead to a positive impact on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Nokia is selling its Alcatel Submarine Networks business to the French State for EUR350 million, retaining a 20% stake. This move will streamline Nokia's Network Infrastructure Business Group, reducing net sales by EUR 1 billion but increasing operating profit margin by 100-150 basis points. The sale is expected to close by late 2024 or early 2025.
The sale of ASN is a significant move for Nokia, streamlining its Network Infrastructure Business and potentially improving profit margins. The market has reacted positively, with shares up 1.36% premarket.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Nokia's stock via the Defiance Quantum ETF (NYSE:QTUM). The sale of ASN is expected to streamline Nokia's business and improve profit margins.
The sale of ASN is a positive development for Nokia, which is a component of the QTUM ETF. This could lead to a positive impact on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50