Psion shares hit by Symbian sale

MORE than £100m was wiped from Psion, a quarter of its market value, as it announced a deal to sell its one-third stake in mobile phones software maker Symbian for less than was hoped.

Psion has agreed to sell its Symbian stake to Nokia for £135.7m, making Nokia the dominant Symbian shareholder with 63.3% and valuing the business at £436.2m.

Investors had hoped Symbian could be worth up to £1bn and were expecting Psion to exit from the venture via a float of the whole business. Psion shares plunged 25 3/4p to 70p as the deal with Nokia was announced.

Symbian and Psion chairman David Potter said: 'We think we have removed the risk for Psion shareholders.'

Psion has invested £28.7m in Symbian since its formation in 1998 and expects to make a clear £128m profit from the disposal of its holding. Psion could get more from the sale if Symbian floats at a higher price than expected.

Psion will receive an immediate cash payment of £93.5m. Nokia will pay the remainder, estimated at £42.2m, by 2005 depending on sales of Symbian units.

Potter said Psion would resume paying a dividend during this financial year. No special dividend is planned.