Nokia To Sell Vertu Division For €200 Million


30.04.2012

Nokia To Sell Vertu Division For €200 Million

The Nokia Q2 2012 financial report showed that things are still not going great for the Finland based company, while the analyst estimations of the upcoming months are pessimist. Thus, it’s time for Nokia to start selling some of their assets. Rumor has it that the phone maker is planning to sell their luxury division, Vertu, which might be acquired for 200 million euros.

The information comes from the guys at Reuters, who said that Nokia aims find a buyer for their luxury phone division and that they are already in discussions with an investor. They say that the mysterious buyer is actually Permira, a financial group that already invested in Hugo Boss and that now wants to control Vertu, as well. We are talking about phones with cases made of gold, prices of thousands of dollars, summing up, luxury products for customers with wallets as thick as a pillow. The brand of Vertu itself is more valuable, as the phones they manufacture have nothing special in terms of technical specifications.

Through the years, Nokia had a somewhat mysterious approach regarding Vertu, as they never unveiled the earnings of their luxury division. Still, analysts estimate that Vertu has earnings of around 200 – 300  million euros each year. Sources close to the Finnish company said that we should not look at the Vertu sale as a don deal, as the discussions are in early stages.

It looks like Nokia’s announcement that Vertu is for sale haven’t attracted many buyers. The officials of the Finland based company got in touch with a Goldman Sachs adviser in order to help them find more potential customers, and one of them is Permira.

The first rumors about Vertu sale appeared in December last year, after Nokia’s rating on stock market was downgraded to BB+ (Junk) and now it looks like the Finns have put high hopes into this deal.

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