Nokia gets green signal to transfer Chennai factory to Microsoft
Finnish mobile handset maker Nokia got relief Thursday as the Delhi High Court defreezed its assets in India, paving the way for the sale of the company's Chennai factory to Microsoft.
"Nokia acknowledges the decision by the Delhi High Court today to release Nokia's Indian assets, including its Chennai facility, for the planned transfer to Microsoft," Nokia said in a statement Thursday.
Nokia was trying to resolve the tax dispute ahead of the closure of the 5.4 billion euro Microsoft deal.
"Our current understanding is that this decision allows for the transfer of the assets. However, Nokia has been asked to meet a number of conditions in the ruling, and still needs to provide the authorities with additional documentation. Nokia expects these conditions to be in line with international treaties and practices," the company said in the statement.
"The company will now start to prepare for the planned transfer of the assets, but notes that there are still a number of statutory clearances that remain before the assets can transfer.
"Nokia repeats its call for the Indian government to work with urgency to facilitate the other approvals needed for the transfer and secure employment for the tens of thousands of employees involved," the statement added.
It said Nokia continues to expect the transaction with Microsoft to close in the first quarter of 2014.
(Posted on 13-12-2013)