Shareholders of Nokia Corporation today approved the proposed acquisition of rival Alcatel-Lucent in a deal valued at around $17 billion.
The aim of the acquisition is to create a telecom network major by combining the business of Nokia Networks and relatively smaller Alcatel-Lucent. Nokia has already announced a management team involving key executives from Alcatel-Lucent and Nokia.
Nokia shareholders adopted all resolutions in an Extraordinary General Meeting (EGM) concerning an authorization to issue shares and changes to the Articles of Association and composition of the Board of Directors.
Earlier, Nokia received all regulatory approvals to proceed with the proposed transaction and the launch of the French and U.S. public exchange offers for Alcatel-Lucent securities.
The transaction to purchase Alcatel-Lucent is expected to close in the first quarter of 2016 and is subject only to the satisfaction of the minimum tender condition or, if this condition is waived by Nokia, the crossing of the mandatory minimum acceptance threshold.
“Nokia’s shareholders have shown the full extent of their support for our proposed combination with Alcatel-Lucent,” said Risto Siilasmaa, chairman of the Nokia Board of Directors.
Rajeev Suri, president and CEO of Nokia Corporation, said: “We are delighted that the vast majority of Nokia’s shareholders recognize the long-term value creation opportunity that this proposed combination represents.”
Nokia CEO urged Alcatel-Lucent shareholders and convertible bondholders to tender their securities into the public exchange offer.
