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| A Lumia 950 of Microsoft. — Photo microsoft.com |
HA NOI (Biz Hub) — Microsoft Corporation has reached an agreement to sell the company's entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy.
The business will be sold for US$350 million, according to the announcement on May 18.
As part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam, a manufacturing facility in Ha Noi. Some 4,500 employees will transfer to or will have the opportunity to join FIH Mobile Ltd. or HMD Global, Oy, subject to compliance with the local law.
Microsoft will continue to develop the Windows 10 Mobile and support Lumia phones, such as Lumia 650, Lumia 950 and Lumia 950 XL, and phones from its OEM partners, such as Acer, Alcatel, HP, Trinity and VAIO.
Microsoft will transfer all its feature phone assets, including brands, software, services and care network, as well as other assets, customer contracts and critical supply agreements.
The transaction is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions are met.
Foxconn is one of biggest electronics producers in Viet Nam. It has two subsidiaries — Funing Precision Component and Fuhong Precision Component — in the northern provinces of Bac Giang and Bac Ninh. — VNS