Network supplier Nokia has made an offer to owners of bonds to repurchase them for cash. The network provider wants to improve its debt position with this offer.
According to Reuters, these are so-called 1 percent bonds that expire mid-March of 2021. The Finnish network provider is offering a total of 500 million euros for this purpose. Application for this tender ran until today. At the same time, Nokia is also tendering for new options.
Reason for repurchase
As a reason for the repurchase of the options, Nokia indicates the improvement of its debt position. But the exact cause is not explicitly mentioned. Perhaps this has to do with possible acquisition rumours that have been circulating for some time now.
The network supplier is in the spotlight because it is one of the largest suppliers of 5G network technology alongside Ericsson and Huawei. Nokia has become a very strategic company. A result of the tensions between the United States government and the Chinese government, as well as the ban on activities of Huawei by the United States government. An acquisition would grant the buyer a lot of influence on the further roll-out of 5G in the world.