Nokia Siemens Networks to tap markets for 700 million euros: FT
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.
A spokesman for NSN declined to comment on the report.
(Reporting by Paul Sandle; Editing by Marguerita Choy)