Nokia Siemens Networks plans to raise $930 million: report
21 Jan 2013
Struggling 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.
