Comptel - Tender offer

Nokia announces its intention to acquire Comptel to advance its software strategy; launches a recommended cash tender offer for all the shares and option rights in Comptel

Comptel Corporation

Stock Exchange Release

February 9, 2017 at 9.00 (CET+1)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, SOUTH
AFRICA OR HONG KONG OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER OFFER
WOULD BE PROHIBITED BY APPLICABLE LAW. 

Nokia announces its intention to acquire Comptel to advance its software
strategy; launches a recommended cash tender offer for all the shares and
option rights in Comptel 

Nokia Corporation (“Nokia”) and Comptel Corporation (“Comptel”) have on
February 8, 2017 entered into a Transaction Agreement (the “Transaction
Agreement”) under which Nokia, through its wholly owned indirect subsidiary
Nokia Solutions and Networks Oy (the “Offeror”), undertakes to make a voluntary
public cash tender offer to purchase all of the issued and outstanding shares
and option rights in Comptel that are not owned by Comptel or any of its
subsidiaries (the “Tender Offer”).The price offered for each share validly
tendered in the Tender Offer will be EUR 3.04 in cash. The Tender Offer values
Comptel at approximately EUR 347 million, on a fully diluted basis. 

SUMMARY OF THE TENDER OFFER

• The offer price is EUR 3.04 in cash for each share in Comptel (the “Share
Offer Price”) 

• The Share Offer Price represents a premium of:

-        28.8 percent compared to the closing price of the shares on Nasdaq
Helsinki Ltd. (“Nasdaq Helsinki”) on February 8, 2017, the last trading day
before the announcement of the Tender Offer; and 

-        51.2 percent compared to the volume-weighted average trading price of
the Comptel shares on Nasdaq Helsinki during the 12-month period preceding the
date of the announcement of the Tender Offer; 

• The price offered for each option right granted under Comptel's share option
schemes 2014 and 2015 and validly tendered in the Tender Offer will be EUR 2.56
in cash for each 2014A option right, EUR 2.16 in cash for each 2014B option
right, EUR 1.53 in cash for each 2014C option right, EUR 2.15 in cash for each
2015A option right and EUR 2.15 in cash for each 2015B option right; 

• The Board of Directors of Comptel has unanimously decided to recommend that
the shareholders and holders of option rights accept the Tender Offer; 

• The following major shareholders of Comptel have irrevocably undertaken to
accept the Tender Offer subject to certain customary conditions: Mandatum Life
Insurance Company Limited, Elisa Corporation, Kaleva Mutual Insurance Company,
Varma Mutual Pension Insurance Company and Ilmarinen Mutual Pension Insurance
Company as well as the members of the Comptel Board of Directors and the
President and CEO of Comptel, representing jointly approximately 48.3 percent
of the shares and votes in Comptel; 

• The Tender Offer is subject to, among others, approvals by the relevant
regulatory authorities, such as competition authorities, and the Offeror
gaining control of more than 90 percent of the outstanding Comptel shares on a
fully diluted basis; 

• The Offeror will, on or about February 24, 2017, publish a tender offer
document with detailed information about the Tender Offer; 

• The offer period under the Tender Offer is expected to commence on or about
February 27, 2017 and to run for approximately four (4) weeks. The Offeror
reserves the right to extend the offer period from time to time in accordance
with the terms and conditions of the Tender Offer. 

• Any distribution of dividend or other assets by Comptel after the date of the
Transaction Agreement shall reduce the Share Offer Price by an amount equal to
such dividend or distribution per share. Such distribution shall not affect the
offer price for the Comptel option rights. 

• Nokia has presented that in Nokia’s view, the Share Offer Price reflects an
attractive premium over Comptel’s current and historical share prices. When
setting the Share Offer Price Nokia has also considered the potential dividends
which could have been payable by Comptel for the financial year 2016 and
believes they are fairly reflected in the offered price. 

“Nokia is committed to building its software business and is backing its
commitment with strategic investments. The timing of the Comptel purchase is
important as our customers are changing the way they build and operate their
networks.  They are turning to software to provide more intelligence, automate
more of their operations, and realize the efficiency gains that virtualization
promises. We want to help them by offering one of the industry’s broadest and
most advanced portfolios. Comptel helps us do that,” says Bhaskar Gorti,
president of Nokia’s Applications & Analytics business group. 

“After careful examination of the Tender Offer, the Board of Directors of
Comptel has unanimously decided to recommend the shareholders to accept it. For
a shareholder, the tender price offers a possibility to sell the shares risk
free at a price reflecting the potential future strategic value of the company.
The Board of Directors of Comptel believes that Nokia’s global reach, strength
of brand and cross-selling opportunities would benefit the activities of
Comptel. Combining Comptel’s business with Nokia would offer the customers of
both Comptel and Nokia a wider and more innovative software portfolio which
would improve competitiveness of the combined business unit, especially in the
eyes of larger customers,” says Pertti Ervi, Chairman of the Board at Comptel. 

“Together with Nokia we would create an agile and innovative player which can
challenge current market leaders head-to-head. Throughout the past five years
we have been working hard to sharpen our thought leadership and competitiveness
by rebuilding the brand, product portfolio and values driven culture. I am 100%
confident that we are now capable, ready and passionate to take the next step
in scaling and expanding our business beyond the ordinary with a new set of
resources that Nokia would provide us,” says Juhani Hintikka, President and CEO
of Comptel. 

Nokia has presented that the planned acquisition is not expected to have a
material effect on the operations and business locations of, or on the number
of jobs at, Comptel. 

The Board of Directors of Comptel has unanimously decided to recommend that the
shareholders and holders of option rights accept the Tender Offer. The Board of
Directors will issue its complete statement on the Tender Offer in accordance
with the Finnish Securities Market Act before the commencement of the Tender
Offer. To support its assessment of the Tender Offer, the Board of Directors of
Comptel has received a fairness opinion from Comptel's financial advisor Sisu
Partners Oy to the effect that the consideration to be offered to the
shareholders and holders of option rights is, from a financial point of view,
fair to such holders. 

The completion of the Tender Offer will be subject to the satisfaction or
waiver by the Offeror of the following conditions: 

(a)            the valid tender of shares representing, together with any other
shares otherwise acquired by the Offeror or Nokia, more than ninety percent
(90%) of the issued and outstanding shares and voting rights of Comptel on a
fully diluted basis and calculated in accordance with Chapter 18 Section 1 of
the Finnish Companies Act; 

(b)           the receipt of all necessary regulatory approvals, permits and
consents, including without limitation competition clearances, and that any
conditions set in such permits, consents or clearances, including, but not
limited to, any requirements for the disposal of any assets of the Offeror,
Nokia or Comptel or any reorganization of the business of the Offeror, Nokia or
Comptel, are acceptable to the Offeror in that they are not materially adverse
to the Offeror, Nokia or Comptel in view of the Tender Offer or the benefits of
the transaction contemplated thereby; 

(c)            no material adverse change having occurred in Comptel and its
affiliated entities, taken as a whole after February 8, 2017; 

(d)           the Offeror or Nokia not, after February 8, 2017, having received
information previously undisclosed to them that constitutes a material adverse
change in Comptel and its affiliated entities, taken as a whole that occurred
prior to February 8, 2017; 

(e)            no information made public by Comptel or disclosed by Comptel to
Nokia or the Offeror being materially inaccurate, incomplete, or misleading,
and Comptel not having failed to make public any information that should have
been made public by it under applicable laws, including the rules of Nasdaq
Helsinki, provided that, in each case, the information made public, disclosed
or not disclosed or the failure to disclose information constitutes a material
adverse change in Comptel and its affiliated entities, taken as a whole; 

(f)             no court or regulatory authority of competent jurisdiction
having given an order or issued any regulatory action preventing, or materially
challenging the completion of, the Tender Offer; 

(g)            the Board of Directors of Comptel having issued its
recommendation for the Tender Offer and the recommendation remaining in force
and not being modified or changed in a manner detrimental to the Offeror or
Nokia; 

(h)           the Transaction Agreement not having been terminated and
remaining in force; and 

(i)             the undertaking by each of the major shareholders of Comptel to
accept the Tender Offer remaining in force in accordance with its terms. 

The Offeror reserves the right to withdraw the Tender Offer in the event that
any of the above conditions to completion is not fulfilled. 

The Offeror will make all necessary filings to obtain approvals from relevant
competition authorities as soon as possible after this announcement of the
Tender Offer. The Offeror preliminarily expects to receive such approvals
within the anticipated offer period. 

The Tender Offer will be financed through Nokia group’s internal financing
arrangements and no third party financing is required by the Offeror to
complete the Tender Offer. The Tender Offer is thus not conditional upon
obtaining any external financing for the Tender Offer. 

The detailed terms and conditions of the Tender Offer and information on how to
accept the Tender Offer will be included in the tender offer document expected
to be published by the Offeror on or about February 24, 2017. 

Pursuant to the Transaction Agreement, the Offeror is to acquire all issued and
outstanding shares and all issued and outstanding option rights in Comptel. On
the date of this stock exchange release, Comptel has 109 271 496 issued shares.
Nokia or the Offeror do not hold any shares or option rights in Comptel. 

The Offeror, Nokia and Comptel have undertaken to follow the Helsinki Takeover
Code issued by the Finnish Securities Market Association as referred to in the
Finnish Securities Market Act. 

Nokia’s stock exchange release relating to the Tender Offer is enclosed to this
stock exchange release. The release contains, among others, Nokia’s strategic
rationale and background for the Tender Offer. 

TRANSACTION AGREEMENT

The Transaction Agreement between Nokia and Comptel sets forth the principal
terms under which the Offeror will make the Tender Offer. 

Under the Transaction Agreement, the Board of Directors of Comptel has, in the
event of a possible competing offer or competing proposal, undertaken not to
modify, cancel, change or not issue its recommendation for the Tender Offer
unless the Board of Directors determines in good faith, after taking advice
from its reputable external legal counsel and its financial advisor, that the
competing offer or competing proposal is more favorable from a financial point
of view compared to the Offeror's Tender Offer, judged as a whole, and that
therefore (i) it would no longer be in the best interest of the holders of
Comptel's shares and option rights to accept the Tender Offer, and (ii) such
non-issuance, modification, cancellation or change is required for the Board of
Directors to comply with its fiduciary duties towards Comptel's shareholders
and holders of option rights. The Board of Directors may modify, cancel, change
or decide not to issue its recommendation for the Tender Offer in accordance
with the above only if prior to such modification, cancellation, change or
non-issuance, the Board of Directors has complied with certain agreed
procedures allowing the Offeror and Nokia to assess the competing offer and to
enhance the Tender Offer. Should the Offeror enhance the Tender Offer so as to
be at least equally favorable from a financial point of view to the holders of
Comptel's shares and option rights as the competing offer or the competing
proposal, the Board of Directors has undertaken to confirm and uphold the
recommendation for the Tender Offer, as enhanced. 

Comptel has also undertaken not to solicit or encourage any competing offers or
inquiries or proposals for such offers or other transactions competing with the
Tender Offer, nor to facilitate or promote any such proposals, except if such
measures are required for the Board of Directors to comply with its fiduciary
duties towards Comptel's shareholders and holders of option rights. Comptel has
agreed to inform Nokia and the Offeror of any competing proposals and to
provide Nokia and the Offeror with an opportunity to negotiate with the Board
of Directors of Comptel of matters arising from such competing proposals. 

The Transaction Agreement further includes certain representations, warranties
and undertakings by both parties, such as conduct of business by Comptel in the
ordinary course of business before the completion of the Tender Offer, and
cooperation by the parties in making necessary regulatory filings. 

The Offeror’s intention is to acquire all the shares and option rights in
Comptel and to apply for the delisting of the shares of Comptel from Nasdaq
Helsinki as soon as permitted and practicable under applicable laws and
regulations. 

ADVISORS

Nordea Corporate & Investment Banking acts as the financial advisor and
Roschier, Attorneys Ltd. as the legal advisor to Nokia and the Offeror in
connection with the Tender Offer. Nordea Bank AB (publ), Finnish Branch acts as
the arranger of the Tender Offer. 

Sisu Partners Oy acts as the financial advisor and Castrén & Snellman Attorneys
Ltd. as the legal advisor to Comptel in connection with the Tender Offer. 

INVESTOR CALL / PRESS CONFERENCE

Nokia and Comptel will host a meeting in Helsinki (Erottajankatu 4 C) for media
and analysts regarding the announcement and Tender Offer at Hotel Klaus K, room
Rake, at 12p.m. (EET). For those unable to join, it is possible to follow the
meeting by phone using the following numbers and asking for the Nokia and
Comptel call: 

Finland: +358981710495

UK: +442031940552

Sweden: +46856642702

U.S.: +18557161597



Media Enquiries:

Nokia

Communications

Phone: +358 (0) 10 448 4900

E-mail: press.services@nokia.com



Comptel

Jukka Jänönen

Global Communications Manager

+358 9 700 1131

jukka.janonen@comptel.com



Investor Enquiries:



Nokia

Investors Relations

investor.relation@nokia.com

Tel. +358 10 448 4900



Comptel

Tom Jansson

Chief Financial Officer

tel. +358 40 700 1849

tom.jansson@comptel.com



Appendix: Nokia’s stock exchange release



ABOUT COMPTEL

Life is digital moments. Comptel perfects these by transforming how you serve,
meet and respond to the needs of “Generation Cloud” customers. 

Our solutions allow you to innovate rich communications services instantly,
master the orchestration of service and order flows, capture data-in-motion and
refine your decision-making. We apply intelligence to reduce friction in your
business. 

Comptel has enabled the delivery of digital and communications services to more
than 2 billion people. Every day, we care for more than 20% of all mobile usage
data. Nearly 300 service providers across 90 countries have trusted us to
perfect customers’ digital moments. 

For more information, visit www.Comptel.com.

ABOUT NOKIA

Nokia is a global leader innovating the technologies at the heart of our
connected world. Powered by the research and innovation of Nokia Bell Labs, we
serve communications service providers, governments, large enterprises and
consumers, with the industry's most complete, end-to-end portfolio of products,
services and licensing. 

From the enabling infrastructure for 5G and the Internet of Things, to emerging
applications in virtual reality and digital health, we are shaping the future
of technology to transform the human experience. www.nokia.com 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, SOUTH
AFRICA OR HONG KONG OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER OFFER
WOULD BE PROHIBITED BY APPLICABLE LAW. 

Forward-Looking Statements

This stock exchange release contains statements that, to the extent they are
not historical facts, constitute "forward looking statements''. Forward looking
statements include statements concerning our plans, expectations, projections,
objectives, targets, goals, strategies, future events, future revenues or
performance, capital expenditures, financing needs, plans or intentions
relating to acquisitions, our competitive strengths and weaknesses, plans or
goals relating to financial position, future operations and development, our
business strategy and the trends we anticipate in the industries and the
political and legal environment in which we operate and other information that
is not historical information. In some instances, they can be identified by the
use of forward-looking terminology, including the terms "believes", "intends",
"may", "will" or "should" or, in each case, their negative or variations on
comparable terminology. By their very nature, forward looking statements
involve inherent risks, uncertainties and assumptions, both general and
specific, and risks exist that the predictions, forecasts, projections and
other forward looking statements will not be achieved. Given these risks,
uncertainties and assumptions, investors are cautioned not to place undue
reliance on such forward looking statements. Any forward looking statements
contained herein speak only as at the date of this stock exchange release. 

THIS RELEASE MAY NOT BE RELEASED OR OTHERWISE DISTRIBUTED, IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA,
SOUTH AFRICA OR HONG KONG OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER
OFFER WOULD BE PROHIBITED BY APPLICABLE LAW. 

THIS RELEASE IS NOT A TENDER OFFER DOCUMENT AND AS SUCH DOES NOT CONSTITUTE AN
OFFER OR INVITATION TO MAKE A SALES OFFER. IN PARTICULAR, THIS RELEASE IS NOT
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
DESCRIBED HEREIN, AND IS NOT AN EXTENSION OF THE TENDER OFFER, IN THE UNITED
STATES, CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA OR HONG KONG. INVESTORS SHALL
ACCEPT THE TENDER OFFER FOR THE SHARES AND OPTION RIGHTS ONLY ON THE BASIS OF
THE INFORMATION PROVIDED IN A TENDER OFFER DOCUMENT. OFFERS WILL NOT BE MADE
DIRECTLY OR INDIRECTLY IN ANY JURISDICTION WHERE EITHER AN OFFER OR
PARTICIPATION THEREIN IS PROHIBITED BY APPLICABLE LAW OR WHERE ANY TENDER OFFER
DOCUMENT OR REGISTRATION OR OTHER REQUIREMENTS WOULD APPLY IN ADDITION TO THOSE
UNDERTAKEN IN FINLAND. 

THE TENDER OFFER IS NOT BEING MADE DIRECTLY OR INDIRECTLY IN ANY JURISDICTION
WHERE PROHIBITED BY APPLICABLE LAW AND, WHEN PUBLISHED, THE TENDER OFFER
DOCUMENT AND RELATED ACCEPTANCE FORMS WILL NOT AND MAY NOT BE DISTRIBUTED,
FORWARDED OR TRANSMITTED INTO OR FROM ANY JURISDICTION WHERE PROHIBITED BY
APPLICABLE LAW. IN PARTICULAR, THE TENDER OFFER IS NOT BEING MADE, DIRECTLY OR
INDIRECTLY, IN OR INTO, OR BY USE OF THE POSTAL SERVICE OF, OR BY ANY MEANS OR
INSTRUMENTALITY (INCLUDING, WITHOUT LIMITATION, FACSIMILE TRANSMISSION, TELEX,
TELEPHONE OR THE INTERNET) OF INTERSTATE OR FOREIGN COMMERCE OF, OR ANY
FACILITIES OF A NATIONAL SECURITIES EXCHANGE OF, THE UNITED STATES, CANADA,
JAPAN, AUSTRALIA, SOUTH AFRICA OR HONG KONG. THE TENDER OFFER CANNOT BE
ACCEPTED, DIRECTLY OR INDIRECTLY, BY ANY SUCH USE, MEANS OR INSTRUMENTALITY OR
FROM WITHIN THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA OR HONG
KONG.

Attachments:

Nokia_s stock exchange release 9 February 2017 7342547_1.PDF