Finnish handset maker Nokia on Monday said it would have to look for another buyer for its Chennai manufacturing unit if it cannot transfer the plant to Microsoft due to the tax row with the government. US software giant Microsoft had in September agreed to acquire Nokia’s devices and services business for $7.2 billion. The Chennai unit, which employs about 8,000 persons, was part of the deal.
However, the unit may have to be segregated if the tax row is not settled before December 12 and Nokia may then look at providing contract manufacturing services to the US-based company for about a year, a senior Nokia official said.
Since the facility will have no use for Nokia post the Microsoft deal, they will try to find another buyer for it, the official told the news agency. Nokia on Monday also offered the Government that it will deposit Rs 700 crore so that it can fight the case, besides its offer that if authorities allow sale of Chennai unit the firm will deposit the cash generated out of it with them, which will be a minimum Rs 2,250 crore.
“We will do our best to get this deal done. But, we also agreed with Microsoft that if the assets are not transferred to them then we will for concessional period offer contract manufacturing services out of the factory assets and by doing so we will try to secure employment for as many employees possible.