Power systems major Siemens, the Indian subsidiary of German Siemens AG, has decided to divest its 100 per cent stake in Siemens Public Communication Networks, Bangalore, to its joint venture partner Nokia Siemens Networks India.
The decision is part of Siemens AG's plans to merge Nokia and Siemens' network and carrier operations for fixed and mobile networks worldwide.
The company intended to divest the entire stake comprising 12,425,000 equity shares of Rs 10 each in its subsidiary SPCNL, Siemens informed Bombay Stock Exchange today. Nokia Siemens Networks India is a 50:50 joint venture between Nokia and Siemens.
The Indian company's board has also approved the sale or transfer of enterprise network division to a 100 per cent subsidiary to be set up by Siemens in India. The sale, which was subject to the shareholders' approval, would be effective from April 1, 2007, it said.
The board also formed a committee of directors to finalise the valuation and price consideration for both the deals.
