Nokia Enhances Share Structure for Infinera Merger Deal

Nokia's Strategic Share Issuance for Infinera Merger

Nokia's Board of Directors recently announced a significant step in its journey towards the merger with Infinera Corporation. This Finnish telecommunications giant has resolved to issue 150 million new shares as part of fulfilling its obligations under the agreed merger terms. The announcement highlights Nokia's strategic intentions and its commitment to strengthening its market position through this acquisition.

Overview of the Share Issuance

The newly issued shares will be given without consideration, indicating that they are an essential component of the merger process. This move is expected to ensure that Nokia can meet its commitments effectively once the merger with Infinera is completed, further enhancing its capabilities in the telecommunications sector.

Expected Timeline for Share Registration

The registration of these shares is anticipated to take place around late November. Specifically, they are set to be registered with the Finnish Trade Register and entered into the Euroclear Finland Ltd book-entry system on the same date. Following this, there will be a notable increase in the total number of shares, bringing the total to approximately 5.76 billion. The shares will remain in Nokia's treasury until the merger is finalized, after which they are expected to start trading on major exchanges.

Future Plans Following the Merger

Nokia has also indicated plans to direct up to 150 million shares from its treasury to fulfill the commitments to Infinera shareholders. This is all part of a broader strategy that anticipates the merger's completion in the first half of 2025. The shares’ subscription price will be determined by the closing price at the time of the merger, providing a transparent approach to the transaction.

Equity Programs and Share Utilization

Nokia's thoughtful approach to the share issuance extends beyond mere merger obligations. Should there be any surplus shares, the company plans to direct these to participants of both Nokia's and Infinera's equity programs. This includes various incentive plans designed to promote employee participation and retention, reflecting Nokia's commitment to its workforce and its strategic goals.

Nokia's Vision for Innovation

In tandem with its financial maneuvers, Nokia continues to focus on technological innovation in the B2B sector. With its renowned history of developing advanced networking solutions, Nokia is dedicated to creating networks that not only perform but also evolve intelligently. Research from Nokia Bell Labs supports this initiative, aiming to deliver high-performance networks for service providers and enterprises around the globe.

Looking Ahead: Nokia and Infinera

As the merger process unfolds, both Nokia and Infinera are positioned to benefit significantly. By combining their strengths, they aim to push the boundaries of telecommunications technology. The anticipated merger is viewed as a pivotal move in positioning Nokia for enhanced competitiveness in the market, especially as technology and broadband demands continue to grow globally.

Frequently Asked Questions

What is the purpose of Nokia's share issuance?

The share issuance aims to fulfill Nokia's obligations under the merger agreement with Infinera Corporation.

How many new shares is Nokia issuing for the merger?

Nokia is issuing 150 million new shares as part of the merger obligations.

When will the shares be registered?

The registration is expected to take place around late November 2024.

What will happen to surplus shares after the merger?

Any surplus shares will be directed to participants of Nokia's and Infinera's equity programs.

What is Nokia’s focus in technology development?

Nokia is focused on creating innovative networking solutions that are open, high-performing, and capable of evolving to meet future technological demands.

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