After months of speculations and lengthy discussions between Paris and Helsinki, culminating in the tentative offer of April 14, Nokia and Alcatel-Lucent Wednesday announced it has finally sealed the deal to combine to create an innovation leader in next generation technology and services for an IP connected world.
The two companies have entered into a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share.
Facts already made known by the two companies however, show that the all-share transaction values Alcatel-Lucent at EUR 15.6 billion ($16.6 billion) (N3,295 trillion) on a fully diluted basis, corresponding to a fully diluted premium of 34 per cent (equivalent to EUR 4.48 per share), and a premium to shareholders of 28 per cent (equivalent to EUR 4.27 per share), on the unaffected weighted average share price of Alcatel-Lucent for the previous three months.
This is based on Nokia’s unaffected closing share price of EUR 7.77 on April 13, 2015. Each company’s Board of Directors has however approved the terms of the proposed transaction, which is expected to close in the first half of 2016. The proposed transaction is subject to approval by Nokia’s shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions.
Meanwhile, the combined company will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are. This foundation is essential for enabling the next wave of technological change, including the Internet of Things and transition to the cloud.
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