Nokia to buy remaining Alcatel-Lucent shares

By:
Alan Burkitt-Gray
Published on:

Nine months after completing its takeover of Alcatel-Lucent, Nokia has launched a squeeze-out to buy the remaining 5% of the company

Nokia is trying to buy the remaining 5% of shares in Alcatel-Lucent that it does not already own.

The company has filed an offer document with the French financial regulator, the Autorité des marchés financiers (AMF), saying that it is prepared to pay €3.50 a share for the outstanding stake – a process known as a “squeeze-out”.

Nokia completed its €15.6 billion purchase of Alcatel-Lucent in January, but failed to persuade all shareholders to accept the deal. Since then, the two companies have been operating as one, though Alcatel-Lucent remains a separate legal entity until Nokia can take over 100% of it.

Rajeev Suri, president and CEO of Nokia, said: “This public buy-out offer and squeeze-out will give Nokia 100% ownership of Alcatel-Lucent in early Q4 under the indicative timeline, enabling us to operate even more efficiently, and ensuring we deliver outstanding service to our customers and further value creation opportunity to our current and future shareholders.”

In addition to offering to buy up remaining shares, Nokia is offering to buy up old Alcatel-Lucent bonds that would have been convertible into shares in Alcatel-Lucent in January 2019 and January 2020.

Nokia holds 95.32% of the share capital and 95.25% of the voting rights of Alcatel-Lucent, corresponding to 95.15% of the Alcatel-Lucent share capital on a fully-diluted basis. That means it has crossed the 95% ownership thresholds in Alcatel-Lucent that allow it to take the ownership up to 100%.

Nokia said it expects the offer to open in the second half of September, following a review and clearance by the AMF. Nokia added: “The squeeze-out would occur on the trading day following the expiration date of the public buy-out offer, which Nokia expects to occur in early October 2016.”