At a meeting for Nokia’s shareholders, held on Tuesday at the Finnish capital of Helsinki, 99.5% of the total 3,900 Nokia investors agreed to the Microsoft deal to buy Nokia’s devices and services unit.
This initiative was brought up by Steve Ballmer of Microsoft around February this year. He met with Nokia’s chairman, Risto Siilasmaa in Barcelona. Then the deal was made known to everyone in September. The deal entails Microsoft buying Nokia’s devices and services unit at €5.44 billion (about $7.37b, £4.57b, AU$7.82b) and also license Nokia patents for the next 10 years. All workers in that unit will be transferred to work with Microsoft.
Stephen Elop, the former president chief executive of Nokia Corporation, was to step down and resign from the company’s board under the terms of the deal.
Nokia plans to go into a separate business which does not include devices and services after the buyout. The three major things they plan to concentrate on are: NSN, mapping business Here, and Advanced Technologies, which covers patents and tech research.
Though some people are still of the view that the devices and services unit of Nokia should be not be sold Nokia, they believe Nokia stands to lose more if that happens.
“Nokia has been one of the cornerstones for Finnish society. We are losing part of that,” said Sirkka-Liisa Vikman, who said it was her first and likely last attendance at a Nokia shareholders’ meeting.
Nokia CFO Timo Ihamuotila said on the company’s third quarter earnings call last month “Subject to the deal with Microsoft closing, Nokia’s earnings profile and financial position are expected to strengthen significantly”.
Nokia also said that the recent earning’s from the devices and services unit is insignificant from their total earning. So they believe the sale of that unit won’t bring any downfall to Nokia.