During Friday’s Morning trade, Shares of Nokia Corporation (ADR) (NYSE:NOK), declined -0.63% to $6.28. Nokia Corporation (Nokia) invests in technologies. The Company operates through three business segments: Nokia Networks, HERE and Nokia Technologies.
Nokia and China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) have signed a memorandum of understanding (“MoU”) recently confirming their intention to combine Nokia’s telecommunications infrastructure businesses in China (“Nokia China”) and Alcatel-Lucent Shanghai Bell (“ASB”) into a new joint venture. As agreed under the MoU, Nokia anticipates to hold 50% plus one share in the new joint venture, with China Huaxin holding the remaining shares. Fair value compensation would be received for the contribution of relevant assets to the joint venture.
The new joint venture is conditional on and would be formed after the closing of Nokia’s planned combination with Alcatel-Lucent, at which point Nokia would own 50% plus one share of ASB. The new joint venture is predictable to be a strong national asset based in China capable of delivering value for both parties. Nokia China and ASB are leaders in the Chinese telecommunications infrastructure market and both are long-standing contributors to the development of China and innovation in the country.
The new joint venture is planned to operate under the English name of Nokia Shanghai Bell and would be registered in the China (Shanghai) Pilot Free Trade Zone. The new joint venture would have one board of directors, one administration team, unified customer and business functions, and one integrated product portfolio and R&D platform.
Yuan Xin, Chairman, China Huaxin, said: “We are happy to have signed this agreement with Nokia, and firmly believe the projected combination would reinforce our companies’ presence in China. By bringing these two entities together, the new company would possess greater capacity for innovation and outstanding R&D capabilities, delivering benefits to our customers and shareholders alike.”
The day started out with a lower opening price of $6.26, versus its prior close of $6.32.The company traded with the total volume of 12.3 million shares, while its average trading volume remained 11.47 million shares. During the last 5 trades the stock jumped almost 2.28%. During the last one month it slipped with the percentage of -5.14. Its year to date performance remained down -21.01%.
Nokia Corporation, together with its auxiliaries, provides network infrastructure and related services in Finland, the United States, Japan, China, India, the Russian Federation, Germany, Taiwan, Indonesia, Italy, and internationally. The company operates through four segments: Mobile Broadband, Global Services, HERE, and Nokia Technologies.
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