Nokia Oyj is exploring the sale of its maps business as the Finnish equipment maker focuses on boosting growth at its wireless-network unit and improving its debt rating, according to people familiar with the matter.
Nokia has reached out to potential buyers, including, mobile car-booking app maker Uber Technologies Inc and private-equity firms, the people said. A group of German carmakers has also shown interest and bids for the unit are expected as soon as this month, the people said.
The maps business, which is known as HERE, is valued at about 2 billion euros (US$2.1 billion), according to Nokia’s financial reports. That suggests Nokia’s mapping assets have lost value since 2008, when the company spent US$8.1 billion to buy map provider Navteq Corp.
The map business provides data to Amazon.com Inc, Microsoft Corp, Yahoo Inc and four out of five car-navigation systems.
Shares on Friday rose 5.6 percent to 7.58 euros in Helsinki, the highest close since 2011, valuing the entire company at about 28 billion euros.
The Finnish company, which is working with a financial adviser, might decide against a sale if it cannot get a price it deems sufficient, the people said. HERE reported full-year sales of 970 million euros and an operating loss of 1.24 billion euros, including a goodwill impairment of 1.21 billion euros, according to the annual report. In January, Nokia projected rising sales for its maps and patents divisions for this year.
Proceeds from a sale of HERE could be used for acquisitions to build Nokia’s network business, including the long-mooted takeover of part of French rival Alcatel-Lucent SA, according to Kepler Cheuvreux analyst Sebastien Sztabowicz.
“We believe a sale of the mapping business could give further credibility to the scenario of an offer on Alcatel-Lucent’s wireless access business,” Sztabowicz wrote in a note to clients.
Alcatel shares closed up 4.8 percent at 3.83 euros, valuing the Paris-based company at about 10.8 billion euros.
Nokia has three businesses left after it sold its phone unit to Microsoft for about US$7.5 billion: the networks division, which makes up about 90 percent of total revenue; its maps business; and a research and development unit which is responsible for licensing its patents.
In January, the company reported fourth-quarter net income of 443 million euros and sales that rose 9.4 percent to 3.8 billion euros.
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