(Reuters) - Nokia Siemens Networks (NSN) is planning to raise as much as 700 million euros ($930 million) from public markets in the spring to pay down debt and fund investment, the Financial Times said on its website on Sunday, citing people familiar with the plan.
The high-yield bond will be the first time the Nokia and Siemens joint venture has tapped public markets, the FT said, and it will test investor appetite in the telecoms equipment maker ahead of a possible listing.
NSN, which was being squeezed by rivals Huawei and ZTE, has been turned around thanks to cost cuts and improved sales of higher margin network equipment gear to operators investing in faster 4G networks.
Analysts have said the unit now looks an attractive proposition both for public investors and private equity firms, with estimates earlier this month that it could be worth well above 5 billion euros.
Sentiment: Strong Buy
Excellent piece of news, this will officially put pretty much an end to cash charges to Nokia's balance sheet on NSN restructuring as is a ballpark figure of what is left to bleed going forward with the added benefit of a cash flow positive NSN and the proceeds in coming quarters of units sold and in selling process.
The debt offer will be scooped in hours and only a matter of time before a spin off materializes. I am sure Nokia will act quickly and get it over with. Nokia will be a lean phone focus brand that will also have a bottom in terms of valuation as it will be an extremely attractive acquisition target.
Keep the news coming, this is forward looking news not crazy dividend reassurances.