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Nokia India on Friday informed its employees it would transfer its assets in India to Microsoft between January and March 2014, after securing the necessary approvals from the government.
Through a notice, Nokia India announced the transfer of its Indian assets to Microsoft had been cleared by the Delhi High Court, adding it was looking at the court’s conditions for the deal. The notice added the company would work towards the transfer of the assets during January-March 2014, said M Saravanakumar, president of the company’s staff union.
Sources said Microsoft and Nokia were expected to start the transfer process soon. A total of 45 different approvals are needed for the transfer, most of which have to be sought by Microsoft. Till the deal is concluded, likely by the first quarter of 2014, workers at the factory will remain Nokia employees.
On Thursday, the Delhi High Court had allowed the company to proceed with the transaction, part of a global deal in which Microsoft bought Nokia’s smartphone business for $7.3 billion. The court also asked Nokia India to deposit Rs 2,250 crore in an escrow account and give a letter of guarantee that it would comply with the order. It added the Income Tax Department could approach the court if the company defaulted on tax payments.
Nokia India’s manufacturing facility near Chennai, one of the company’s largest, as well as the 8,000 direct and about 25,000 indirect employees of the company, have faced various hurdles due to the Income Tax Department’s legal action related to a tax dispute. This led to the facility being shut.
Earlier, the company had informed its employees in case the facility wasn’t part of the deal with Microsoft, it might become a contract manufacturer. The employees had objected to this, demanding the company make arrangements to transfer the facility and the employees to Microsoft.
