logo
  Join        Login             Stock Quote

Nokia (NOK) To Sell, Lease Back Espoo Headquarters

 December 04, 2012 07:43 AM
 


(By Balaseshan) Ailing cellphone giant Nokia Corp. (NYSE: NOK) has agreed to sell and lease back its head office building in Espoo, Finland on a long-term lease to Finland-based Exilion for 170 million euros ($222.3 million).

Nokia was "evaluating different options for non-core parts, such as real estate holdings, and that includes the headquarters", Reuters reported in October quoting Nokia spokeswoman Maija Taimi. Finnish daily Iltasanomat had reported that the Espoo headquarters is probably worth between 200 million and 300 million euros.

"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome," Nokia's Finance Chief Timo Ihamuotila said in a statement on Tuesday. "As we have said before, owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets."

[Related -Microsoft Corporation (MSFT): Little Choice But To Buy Nokia Corporation's (NOK) Devices & Services]

"We are naturally continuing to operate in our head office building on a long-term basis," Ihamuotila added.

Nokia, led by Stephen Elop, has already announced several restructuring initiatives. Since Elop took the helm in September 2010, Nokia has trimmed more than 25,000 jobs.

In June, Nokia said it would slash up to 10,000 jobs, or 8% of its workforce, to boost its operating margins. The company plans to implement the cuts globally by the end of 2013. In February, the company said it would trim another 4,000 jobs and shift the device assembly plant to Asia where most of the component suppliers are based.

[Related -Microsoft Corporation (MSFT): Did Microsoft Act Late Over Deal With Nokia Corporation (ADR)?]

As part of its transformation strategy, Nokia also disclosed plans to sell its non-core assets, and said it would sell its luxury phone unit Vertu to European private equity firm, EQT VI. The potential sale, which could fetch about $265 million, is part of Nokia's stated strategy to get rid of its non-core assets as it transforms itself to meet the demands of the market.

U.S.-listed shares of NOK closed Monday's regular session at $3.26. Over the past year, the stock has been trading in a range of $1.63 to $5.87.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.