Reunert was investigating options to expand the business on the continent, CEO Nick Wentzel has said.
Reunert has received payment for its 40% stake in Nokia Siemens Networks (NSN) SA after deciding last year to sell out of the unit.
The listed electronics company says the sale should benefit earnings per share by 35.3%, although headline earnings per share are expected to decline 2.2%. These figures are based on its last year-end results to September.
Reunert has elected to exercise its option to sell the stake back to Nokia Siemens and has been paid R793.5 million for the 40% share. NSN supplies infrastructure and solutions to communications service providers.
The company says the sale of the share dilutes headline earnings by 2% on a comparative basis for the year to September 2010. However, Reunert had been receiving less commission from its investment, which led to its decision to sell out.
Reunert’s minority stake in NSN meant it was a passive shareholder and had no control over the business. The listed company has historically held a 40% stake in Siemens Telecommunications, which later became a 40% stake in NSN after Nokia and Siemens merged the business in 2007.
Reunert was entitled to sell the stake at the end of last month. The company did not indicate what it would do with the cash injection. It already had R1.8 billion in the bank at the end of September.
CEO Nick Wentzel previously said Reunert was looking for areas in which to expand, and would identify more Nashua Office Automation franchises to buy out, as well as investigate options to expand the business on the continent.
Reunert exits Nokia Siemens Networks
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