Nokia Corporation (ADR) (NYSE:NOK) has issued close to 6.5 million new shares in what is called “directed share issue.” The development followed the authorization to do so by the Extraordinary General Meeting on Dec. 2, 2015.

According to Nokia Corporation (ADR) (NYSE:NOK), the shares have been issued so that the company can gain more Alcatel Lucent SA (ADR) (NYSE:ALU) shares in a private transaction. The shares are being issued at the rate of 0.55 Nokia shares for every Alcatel share. The issuance of the new shares is aimed at increasing Nokia’s ownership in Alcatel. It is important to point out that that is the same rate observed at the recently completed public offering for Alcatel securities in the U.S. and France.

Nokia Corporation (ADR) (NYSE:NOK)’s newly-issued shares will be paid by Alcatel shares offered in exchange for the same. The aggregate subscription price for the new shares is 36.3 million Euros and is based on the closing price of Nokia shares on Feb. 18. The result of the new shares offering will be entered in Nokia’s fund for non-restricted equity. As such, share capital of Nokia will not be affected and will remain at 245.9 million Euro.

Shares registration

Nokia says it will register the newly issued shares with the Finnish Trade Register on Feb. 24 or about that date. Following the registration of the shares, Nokia expects its shares to be slightly more than 5.77 billion. All the newly issued shares will have rights to dividends as well as all other rights that earlier shareholders enjoy upon the scheduled registration.

Synergies

Nokia Corporation (ADR) (NYSE:NOK)-Alcatel combination is expected to create an industry giant and result in at least 900 million Euro cost-synergies. Job cuts are expected to follow the merger as the combined company drives towards an efficient operation. In job cuts, France is likely to be less affected as one of the agreements that paved the way for the merger was about preserving Alcatel jobs in the country.