Nokia completes divestment of Vertu luxury mobile phone business to EQT VI
Telecom Lead Europe: Nokia has completed the divestment of its Vertu luxury phone unit to Swedish private-equity firm EQT Partners AB.
The divestment is valued for around $250 million.
The transaction was originally announced on June 14, 2012. As part of the transaction, approximately 1,000 employees have transferred with Vertu. Nokia retains a 10 percent minority shareholding in Vertu.
The move to sell off Vertu was a part of Nokia’s divestment strategy and turnaround plan. The company is shedding non-core businesses as it struggles to turnaround its core smartphone operations.
England-based Vertu is known for its jewel-bedecked mobile phones that sell for an average price of more than 5,000 euros. The company was started by Nokia’s then-chief designer Frank Nuovo in 1998, is the dominant player in the luxury-phone sector.
This year, Vertu’s share declined almost 40 percent. Earlier, some reports suggested that the Finnish handset manufacturer appointed Goldman Sachs to oversee the sale of its UK subsidiary.