10/27/2022 0 Comments Helsinkibased 530m iconiq![]() ![]() Overseas investors have been regarding India with some trepidation as tax rules have been changed with retrospective effect and courts have overturned government decisions, forcing companies to write off investments. And Nokia has already warned it may be forced to close the plant down if the dispute wasn’t resolved. The two companies had previously said the deal closure won’t be affected by the tax dispute in India. Shutting down the plant totally also remains an option, people said. Any sale to a third party doesn’t seem likely as several handset makers that ET spoke to said they won’t be willing to pay even close to what Microsoft could be offering for the plant. The people said the recent voluntary retirement scheme offered to employees at the Chennai plant indicates that Nokia is preparing to scale down operations, trying to conserve as much cash as possible as it seeks to sort out the dispute and eventually transfer the unit to Microsoft. They have no other option” but to leave the plant out of the deal for now, a person close to developments in Nokia said, requesting anonymity due to the matter’s sensitivity. With the $7.2-billion deal on the verge of closing, given its April deadline, time is running out for Nokia to resolve the India dispute. Time running out for Nokia Nokia hasn’t yet revealed its future course of action following the SC order. But it opposed another condition - to furnish another bank guarantee from the parent covering unspecified potential future tax liabilities - and appealed against it in the Supreme Court, which upheld the HC order. ![]() ![]() As directed by the Delhi High Court, it also agreed to furnish a Rs 3,500-crore bank guarantee covering the amount it had transferred to its parent as dividend. #HELSINKIBASED 530M ICONIQ FREE#Nokia India has offered to put Rs 2,250 crore in an escrow account, and has already paid Rs 700 crore separately to free up the plant. The tax authorities attached the factory soon after the Nokia-Microsoft deal was announced last September. NEW DELHI: Nokia is likely to exclude its manufacturing plant in Chennai from the global purchase of its devices business by Microsoft, as the Finnish firm runs out of time and options to resolve its tax dispute with Indian authorities, people familiar with the matter said, leaving the future of 8,000 direct employees uncertain. ![]()
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