Acquisition Completion, etc.
Nokia Corporation
29 August 2000
Nokia announces the completion of the acquisition of DiscoveryCom
- and issues new Nokia shares
Nokia announced its agreement to acquire DiscoveryCom, a leading
provider of loop management solutions for broadband DSL services,
on August 8, this year. The transaction was subject to customary
closing conditions and today Nokia can announce the completion of
the DiscoveryCom acquisition, and a resolution by the Board to
issue approximately 3.9 million new Nokia shares.
The Board of Directors of Nokia Corporation has resolved to
increase the share capital of the Company by EUR 234,557.70,
consisting of 3,909,295 new shares, with the par value of EUR 0.06
each, for the subscription price of EUR 45.9805 per share. The new
Nokia shares will be offered for the subscription by the
shareholders of DiscoveryCom, Inc. and they are payable with the
shares of DiscoveryCom, Inc. The subscription period is August 30
- August 31, 2000. The subscriptions shall be paid no later than
August 31, 2000. The new Nokia shares are used to acquire
DiscoveryCom, Inc., an Alabama corporation, which purpose
constitutes important financial grounds to deviate from the
shareholders' pre-emptive rights to subscribe for new shares. The
increase in the Nokia share capital was resolved on the basis of
the authorization given to the Board of Directors by the Annual
General Meeting on March 22, 2000.
The total acquisition price is USD 220 million, and the remaining
part thereof is payable in stock options which do not result in an
increase of the share capital or total number of shares.
Loop management enables communications service providers to
rapidly install and maintain Broadband Digital Subscriber Line
(DSL) services for fast Internet access. 'The early phase of the
integration with DiscoveryCom has proved to be very successful and
we have received positive feedback from customers,' says Mr. Olli
Oittinen, Senior Vice President, Broadband Systems, Nokia
Networks. 'Our leading position in DSL is further strengthened as
DiscoveryCom brings an ideal compliment to Nokia's broadband
offering.'
DiscoveryCom was founded in 1995 and employed approximately 50
people. It is a technology company involved in the design,
manufacture, and distribution of communications products that
enable service providers to rapidly install and maintain broadband
DSL services. The company offers a successful line of portable
broadband test instruments that are used by major telephone
companies and service providers worldwide. The new LoopMaster
product line automates the qualification, provisioning, and
management of local copper telephone circuits used to deliver
broadband DSL services to subscribers.
Nokia is paving the way to the Mobile Information Society with its
innovative products and solutions. The company is the leading
mobile phone supplier and a leading supplier of mobile, broadband
and IP networks, related services as well as multimedia terminals.
In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9
billion). Headquartered in Finland, Nokia is listed on the New
York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock
exchanges and employs more than 60,000 people.
Further information:
Communications Department,
Nokia Networks
Tel. + 358 9 5113 8193
Email: nokia.networks@nokia.com
www.nokia.com
Latest directors dealings
- 9 hours ago Close Brothers Group
- 9 hours ago Savannah Energy
- 9 hours ago Mid Wynd International Inv Trust
- 9 hours ago Dillistone Group
- 9 hours ago SSP Group