Nokia Offers More Cash to Thaw Indian Assets
Nokia Corp. (NYSE:NOK) offered to pay a $369 million fine to the Indian government so that the company’s assets in the country can be unfrozen and it can move forward with its deal to sell its handset business to Microsoft (NASDAQ:MSFT), according to a report from Reuters.
At the end of September, Nokia’s assets in India were frozen over a tax dispute; the Indian Income Tax Department believes the Finnish tech company owes a staggering $635.1 million in back taxes. The company’s bank accounts were unfrozen shortly after the dispute was reported, but assets like its buildings and facilities remain frozen.
At that time, a spokesperson for the company said that Nokia has the funds necessary to pay the bill, and that the dispute wouldn’t interfere with the Microsoft purchase, which is still expected to close in the first quarter of 2014.
Nokia’s largest smartphone factory is located in Chennai, India, and it produces 20 different models of the company’s devices. That factory would be a key part of Microsoft’s purchase of the devices unit of Nokia.