Johannesburg - Electrical engineering and electronics group Reunert [JSE:RLO] said on Friday that it has received payment of close to R794m for the sale of its 40% stake in Nokia Siemens Networks SA (NSN).
NSN provides infrastructure to communications service providers.
Before the establishment of NSN, Reunert had a 40% shareholding in Siemens Telecommunications, with Siemens the remaining shareholder.
During the latter part of 2006 Siemens and Nokia entered into an agreement to establish a joint venture, including but not limited to the Sietel business in SA. The Sietel business was renamed NSN.
Reunert said it elected to exercise its option.
"Although the sale of the shares dilutes earnings by 2% on a comparative basis for the year to September 2010, the declining commission earned from the investment resulted in the decision to take advantage of the put option. The comparative earnings are also calculated based on historically low interest rates," it said.
The group said it had transferred and ceded 56 000 ordinary shares with a par value of R1 each to Nokia Siemens Networks BV, the holding company of NSN; these shares represent 40% of the issued share capital of NSN.
Nokia Siemens Networks BV has acquired the shares and the money was received by Reunert at the end of January.