Looks to dispose off non-core assets
Nokia is reportedly in advanced talks with European private equity group Permira, to sell its luxury mobile-handset business Vertu, the maker of $300,000 diamond-clad phones for about $265m.
The deal will enable Nokia to dispose off its non-core assets and boost its devices division as it aims to increase sales of its Windows-based Lumia smartphone platform, the Financial Times reported.
The Finnish mobile-phone manufacturer, which reported a $1.7bn loss in the first quarter, is being advised by Goldman Sachs on the sale.
EQT, the Northern European private equity group, is also said to be in discussions to buy Vertu, although these are not moving ahead now.
Nokia earlier announced its plans to sell its luxury subsidiary Vertu in December last year.
The UK-based manufacturer and retailer of luxury mobile phones Vertu offers diamond-clad mobile phones, which feature metals such as sapphire crystal and finest grade leather, and can usually cost upward of $200,000.
The business has over 600 employees with estimated annual revenue between €200m and €300m.