Hon Hai unit to buy feature phone assets from Microsoft
2016/05/18 21:11:24
Taipei, May 18 (CNA) FIH Mobile Ltd. (富智康), a subsidiary of Taiwan-based Hon Hai Precision Industry Co. (鴻海), said Wednesday that it has agreed to buy Microsoft Corp.'s feature phone assets for US$350 million.
FIH Mobile has agreed to team up with HMD Global Oy for the purchase of the assets under the Nokia trademark from Microsoft.
The acquisition speculation had been circulating in Taiwan's equity market in recent sessions, and the market has perceived the move as part of Hon Hai's efforts to expand globally following a deal signed in early April to buy a 66 percent stake in Japan's financially struggling Sharp Corp.
Hon Hai, the world's largest contract electronics maker, currently owns a 70 percent stake in FIH Mobile, which is listed in Hong Kong and has a broad production base in China.
Under the deal with Microsoft, FIH Mobile said it will acquire the assets, which involve technology, manufacturing, designing and marketing of cellphones and other handheld devices under the Nokia name, while FIH will also acquire part of Nokia's intellectual property.
As part of the deal, Microsoft said in a separate statement that FIH Mobile will also buy Microsoft Mobile Vietnam, the U.S. company's smartphone manufacturing facilities in Hanoi. Upon closure of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile or HMD Global, subject to compliance with local law.
FIH Mobile said that the acquisition deal is scheduled to be completed in the second half of this year.
Microsoft announced in September 2013 that it was acquiring cellphone assets from Nokia, and the deal was completed in April 2014.
(By Jalen Chung and Frances Huang)
