Nokia (NOK) Negotiating with Permira for Selling Vertu
Nokia is trying to sell Vertu, the world’s most expensive mobile phone brand to Premira, the private equity group for €200 million. The phones are exclusively made by hand and cost upward of £200,000.
New York, May 1 (SharewellNewswire.com) - Nokia (NYSE : NOK) is negotiating with Permira, the private equity group, for selling the world’s most expensive mobile phone brand Vertu. The Finnish company is trying to turn round its devices division by disposing of its non-core assets.
The deal, if it is successful, will raise about €200 million for Nokia, which was once a lead player in the mass market phone ranges. On the other hand, the deal will enhance the equity firm’s portfolio of tech and luxury brands such as Hugo Boss and Valentino.
Nokia had launched UK-based Vertu as an independently managed subsidiary in 1998 to tap the booming demands of the world’s wealthy people for a status symbol phone that would match their other prized possessions such as upmarket watches or wallets. The phones are exclusively made by hand and cost upward of £200,000 as they are ornamented with precious metal components.
Permira’s rival for Vertu is EQT, the Northern European private equity group, which is also interested in buying the group but has not progressed much at this stage. Besides EQT, there are other luxury goods companies that are also interested in adding Vertu to their range of upmarket products. The mobile phones of Vertu can feature crystal displays and sapphire keys and they link to an on-demand concierge service which can be used for booking restaurants.