Siemens AG
Siemens AG: Nokia and Siemens to merge their communications service provider businesses. New global network leader for fixed–mobile convergence.
Ad hoc announcement transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Nokia and Siemens today announce that they intend to merge the Networks
Business Group of Nokia and the carrier-related operations of Siemens into
a new company, to be called Nokia Siemens Networks. The 50-50 joint venture
will create a global leader with strong positions in important growth
segments of fixed and mobile network infrastructure and services.
The combined company is positioned to lead the development and
implementation of revenue-generating and cost-saving products and services
via its scale and global reach. Nokia Siemens Networks will have one of the
world’s best research and development teams, with the ability to invest in
next generation fixed and mobile product platforms and services. The new
company will have a world-class fixed-mobile convergence capability, a
complementary global base of customers, a deep presence in both developed
and emerging markets, and one of the industry’s largest and most
experienced service organization.
– The transaction closing is expected to take place before January 1, 2007
and is subject to customary regulatory approvals, the completion of
standard closing conditions, and the agreement of a number of detailed
implementation steps.
– After closing, the financial results of Nokia Siemens Networks will be
consolidated by Nokia and accounted for at equity by Siemens.
– Simon Beresford-Wylie, currently Executive Vice President and General
Manager of Networks at Nokia, will assume the position of CEO immediately
upon the closing of the merger. Peter Schoenhofer will assume the position
of CFO. Schoenhofer is currently Member of the Executive Board of Siemens
AG Austria.
– Based on the 2005 calendar year, the combined company had EUR 15.8
billion in pro forma annual revenues and is expected to start operations
with 60,000 employees.
– Estimated cost synergies of EUR 1.5 billion annually by 2010.
– Nokia Siemens Networks will have its operational headquarters in the
metropolitan area of Helsinki, Finland, and will have a strong regional
headquarters in Munich, Germany, where three of the future five divisions
of the new company will be based. Nokia Siemens Networks will be registered
in the Netherlands.
– Both Nokia and Siemens expect the impact of the partnership on their
respective EPS, on a pro forma basis excluding restructuring charges, to be
accretive by the end of 2007 assuming a closing by January 1, 2007.
Furthermore, the Siemens managing board has decided to actively pursue the
consolidation in the Enterprise Networks industry. Siemens is in
negotiations with several interested parties to execute this strategy.
The Wireless Modules business will be integrated into the Siemens group
Automation and Drives as of October 1, 2006.
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Information and Explaination of the Issuer to this News:
Nokia and Siemens will hold a press conference today, Monday, June 19, 2006
at 11:00 a.m. Central European Summer Time at the Hotel InterContinental,
Wilhelm-Leuschner Strasse 43, 60329 Frankfurt am Main. The press conference
will be webcast at www.siemens.com/press and
www.nokia.com/press/pressconference19062006.
A conference call for financial analysts will take place at 3:00 p.m.
Central European Summer Time. The analyst call can be accessed by calling
+44-207-365-8426 (UK dial-in) or +1-617-597-5329 (US dial-in). The
participant code is ‘Siemens’. The conference call can also be accessed via
internet at: www.siemens.com/analystcall and www.nokia.com/investors. A
replay of the call will also be available until June 26, 2006 by calling
+44-207-365-8427 (UK dial-in) or +1-617-801-6888 (US dial-in). The passcode
is: 22951950.
Irina Pchelova
+49 89 636 33693
(c)DGAP 19.06.2006
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Language: English
Issuer: Siemens Aktiengesellschaft
Wittelsbacherplatz 2
80333 München Deutschland
Phone: +49 (0)89 636-00
Fax: +49 (0)89 636-32908
email: investorrelations@siemens.com
WWW: www.siemens.com
ISIN: DE0007236101
WKN: 723610
indices: DAX, EURO STOXX 50
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard),
Hannover, München, Hamburg, Düsseldorf, SWX, Stuttgart;
Foreign Exchange(s) London, NYSE
End of News DGAP News-Service
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