Nokia / Miscellaneous
19.09.2013 15:05
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Nokia Corporation
Stock Exchange Release
September 19, 2013 at 16.05 (CET+1)
Espoo, Finland - As outlined in the notice to the Nokia Extraordinary General
Meeting 2013 (EGM) published earlier today, Nokia is making available proxy
materials with more detailed information on the proposed transaction, announced
on September 3, 2013, in which Nokia has agreed to sell substantially all of
its Devices & Services business to Microsoft (the 'Sale of the D&S Business').
Additionally, Nokia today announces a new publication date for its third
quarter 2013 results announcement.
New publication date for Nokia's Q3 2013 results announcement
Nokia informs that it plans to publish its third quarter 2013 and January -
September 2013 interim report on October 29, 2013. The postponement from the
previously announced date is driven by Nokia's acquisition of Siemens AG's
entire stake in NSN and the announcement of the Sale of the D&S Business, both
of which have taken place during the third quarter of 2013.
Proxy materials for the EGM
The proxy materials relating to the Sale of the D&S Business are available at
www.nokia.com/gm. Additionally, the material is attached to the Nokia stock
exchange release in pdf format and will be furnished to the U.S. Securities and
Exchange Commission.
The proxy materials contain detailed information on the proposal to be voted
on, and we strongly encourage our shareholders to read the materials in their
entirety. The proxy materials include, for instance, a letter from Risto
Siilasmaa, Chairman and interim CEO of Nokia as well as Nokia Group unaudited
pro forma financial information for certain periods. These sections are also
included below in this release.
Nokia Board recommendation
Nokia's Board of Directors recommends that Nokia shareholders vote to confirm
and approve the Sale of the D&S Business at the Extraordinary General Meeting.
September 18, 2013
Shareholders of Nokia Corporation
Re: Notice of Extraordinary General Meeting of Shareholders
Dear Shareholder:
Shareholder:
You are cordially invited to attend an Extraordinary General Meeting of
shareholders of Nokia Corporation to be held on November 19, 2013, at 2:00 p.m.
(Helsinki time) at Barona Areena, Urheilupuistontie 3, Espoo, Finland. The
attached notice of the Extraordinary General Meeting and proxy materials
provide information regarding the proposed resolution to be considered and
voted on at the Extraordinary General Meeting. We hope that you can attend
either by voting in advance, issuing a proxy to a representative or at the
Extraordinary General Meeting in person.
The purpose of the Extraordinary General Meeting is for you and our other
shareholders to consider and vote on a proposal to confirm and approve the
transactions contemplated by the Stock and Asset Purchase Agreement, dated as
of September 2, 2013 (the 'Purchase Agreement'), by and between Nokia
Corporation and Microsoft International Holdings B.V. ('Microsoft
International'), a wholly owned subsidiary of Microsoft Corporation
('Microsoft'). Under the Purchase Agreement, Nokia will sell substantially all
of its Devices & Services business (the 'D&S Business'), including assets and
liabilities to the extent primarily related thereto, to Microsoft International
(the transactions contemplated by the Purchase Agreement, the 'Sale of the D&S
Business') for an aggregate purchase price of EUR 3.79 billion in cash, subject
to certain adjustments.
Nokia has also entered into a mutual licensing agreement (the 'Patent License
Agreement') with Microsoft that will become effective upon consummation of the
Sale of the D&S Business and a payment to Nokia of EUR 1.55 billion, and, as
consideration for Microsoft's unilateral right to extend the term of the Patent
License Agreement to perpetuity, an additional payment of EUR 100 million to
Nokia. Under the Patent License Agreement, Nokia will grant Microsoft a 10-year
license to certain of Nokia's patents and Microsoft will grant Nokia reciprocal
rights to certain of Microsoft's patents for use in Nokia's HERE business. Upon
consummation of the Sale of the D&S Business, Microsoft will also become a
strategic licensee of the HERE location platform and will pay Nokia separately
for the services provided under this license. Microsoft is expected to become
one of the top three customers of HERE. Nokia will retain the Nokia brand and
all of its patents and patent applications worldwide, provided that certain
registered design rights that are specific to the D&S Business will be included
in the assets transferred to Microsoft.
The Sale of the D&S Business and the licensing arrangements described above are
expected to be significantly accretive to Nokia's earnings as each of Nokia's
continuing businesses, NSN, HERE and Advanced Technologies are global leaders
in enabling mobility in their respective areas. The Sale of the D&S Business
and the licensing arrangements described above are also expected to
significantly strengthen Nokia's financial position and provide a solid basis
for future investment in the continuing businesses. During the first half of
2013, we estimate that the non-IFRS result of the business proposed to be sold,
'substantially all of Devices & Services business' would have been a loss of
EUR 395 million and net sales of that business would have been EUR 5.3 billion.
For the same period of time (on a pro forma basis) the non-IFRS result of
Nokia's continuing businesses would have been a profit of EUR 436 million and
the net sales of Nokia's continuing businesses would have been EUR 6.3 billion.
On a pro forma basis Nokia had EUR 12.8 billion of gross cash and EUR 7.5
billion of net cash at the end of the first half of 2013.
More information about the Sale of the D&S Business and the Purchase Agreement
is contained in the accompanying proxy materials, which we strongly encourage
you to read in their entirety. These proxy materials are also available on
Nokia's website at www.nokia.com/gm.
After a thorough assessment of how to maximize shareholder value, including
considering a variety of strategic alternatives, Nokia's Board of Directors
decided to approve Nokia's entry into the Purchase Agreement and the Sale of
the D&S Business contemplated thereby and determined that Nokia's entry into
the Purchase Agreement and the Sale of the D&S Business are in the best
interests of Nokia and our shareholders. The Board of Directors recommends that
Nokia shareholders vote to confirm and approve the Sale of the D&S Business at
the Extraordinary General Meeting.
The Purchase Agreement requires that shareholders representing a majority of
the votes cast at the Extraordinary General Meeting confirm and approve the
Sale of the D&S Business. The consummation of the Sale of the D&S Business is
also subject to the satisfaction of certain other conditions to consummation of
the Sale of the D&S Business as set forth in the Purchase Agreement and
described in the accompanying proxy materials.
Regardless of the number of Nokia shares or American Depositary Shares you own,
your vote is very important. The accompanying notice to convene the
Extraordinary General Meeting and proxy materials provide you with detailed
information about the Sale of the D&S Business and the Extraordinary General
Meeting.
On behalf of Nokia Corporation, we would like to thank all of our shareholders
for their ongoing support as we prepare for this important event in Nokia's
history.
Sincerely,
/s/ Risto Siilasmaa
Risto Siilasmaa
Chairman of the Board and interim CEO
NOKIA GROUP UNAUDITED PRO FORMA FINANCIAL INFORMATION
Basis of compilation of the unaudited pro forma financial information
The following unaudited pro forma financial information ('pro forma', 'pro
forma information') is presented to illustrate the financial impact of the
following transactions (collectively, the 'Transactions'):
- Nokia's acquisition of Siemens AG's ('Siemens') 50% stake in Nokia Solutions
and Networks, also referred to as NSN (formerly Nokia Siemens Networks), for
EUR 1.7 billion, completed on August 7, 2013 (the 'NSN Acquisition');
- The sale of substantially all of Nokia's Devices & Services business (the
'D&S Business') to Microsoft International Holdings B.V. ('Microsoft
International'), a wholly owned subsidiary of Microsoft Corporation
('Microsoft') for EUR 3.79 billion (the transactions contemplated by the Stock
and Asset Purchase Agreement, dated as of September 2, 2013 (the 'Purchase
Agreement'), by and between Nokia and Microsoft International (the 'Sale of the
D&S Business');
- Nokia's granting Microsoft a 10-year license to certain of Nokia's patents
and Microsoft granting Nokia reciprocal right to use Microsoft's patents in
HERE services upon consummation of the Sale of the D&S Business for a license
payment of EUR 1.55 billion in cash to Nokia and, as consideration for the
unilateral right to extend the term of the Patent License Agreement to
perpetuity, an additional EUR 100 million payment to Nokia (the 'Patent License
Agreement');
- Microsoft's payment to Nokia for services provided in connection with
Microsoft becoming a strategic licensee of Nokia's HERE location platform; and
- The sale of EUR 1.5 billion in senior unsecured convertible bonds to
Microsoft (the 'Convertible Bonds') pursuant to a bond purchase agreement,
dated as of September 2, 2013, by and between Nokia and Microsoft International
(the 'Bond Purchase Agreement'). The Convertible Bonds will be issued in three
equal tranches of EUR 500 million each, bearing interest of 1.125%, 2.500% and
3.625% and maturing in 2018, 2019 and 2020, respectively.
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September 19, 2013 09:05 ET (13:05 GMT)
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