06:08 AM EDT, 06/27/2024 (MT Newswires) -- Nokia ( NOK ) said Thursday it agreed to a put option to sell its submarine networks business Alcatel Submarine Networks to the French state for about 350 million euros ($374.3 million).

The company said it would retain a 20% stake and board representation until the targeted sale completion, after which France's State Participations Agency would acquire Nokia's ( NOK ) remaining interest.

The divestment would allow Nokia ( NOK ) to focus on its network infrastructure portfolio, the company said. "This is expected to reduce the net sales of network infrastructure by approximately 1 billion euros but will increase its operating profit margin by 100 to 150 basis points," Nokia ( NOK ) said.

The sale is expected to close at the end of 2024 or the beginning of 2025.