NSN The Next Potential Business Of Nokia In All Its Three Remaining Business

After a deal between Nokia Corporation (ADR) (NYSE:NOK) and Microsoft Corporation (NASDAQ:MSFT), it seems that the Finish Company is left empty handed without its iconic mobile device division, but the prospect is quite different, as the deal made by the Finish Company has opened a multiple option for its shareholders.

When the smartphone company made its deal last month with the software giant since then its shares have increased approximately 60%.  According to the Forbes report the company before the deal will be worth approximately $7.75 each share, and after the deal the value increased by 20%, according to current market price.

Nokia as get rid of its mobile device division for $5 billion, while Microsoft will provide an additional $2.2 billion to access to Nokia profitable patent portfolio for 10 years.

The Finish smartphone manufacturer hands off its handset business because it face major opposition rising using Android iOS in the markets.

There are mainly three businesses left with the smartphone manufacture after get rid of its mobile division, which include NSN that the company hold 100%, Here Maps, and IP licensing. Mostly earning of the company will come from its NSN division in which the company purchased the Siemens stakes for 1.7 billion Euros, which was previously a mutual venture. But the transaction cut its net cash by approximately $0.60 each share.

Bu cut in net cash would not be for long period, which mostly has been balance by the firm’s higher ownership stake in NSN division, and this increases the near-term cash flow attributable to the Finish company’s shareholders for approximately 600 to 700 million Euro and that till the end of 2020 this will be roughly 500 million Euro, by including $6 billion worth or $1.70 each share to the stock.

Last year NSN generated roughly 1.4 billion Euros in free cash flow, due to restructuring of operations and worldwide LTE transition. Previously the decreased in cash generation is typically due to the restructuring process, as it comes to end by margins stabilizing towards the high-end. Nokia Corporation (ADR) (NYSE:NOK) shares dropped -1.64% to $6.58 in last trading session.