Microsoft Corp Vietnam yesterday said it is selling its entry-level feature phone assets to FIH Mobile Ltd and HMD Global Oy for US$350 million.
FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Co Ltd, would also acquire Microsoft Mobile Vietnam as a part of this deal, Microsoft said.
Microsoft will transfer all of its feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements to both the companies. As a part of the deal, FIH Mobile Ltd will acquire Microsoft Mobile Vietnam - the company’s Hanoi, Vietnam, manufacturing facility including a factory in the northern province of Bac Ninh.
Upon close of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile Ltd. or HMD Global, Oy, subject to compliance with the local law.
However, Microsoft will continue to develop Windows 10 Mobile and support Lumia phones from OEM partners, the company said.
Two years ago, Microsoft Group – the new owner of Nokia Vietnam has moved a large number of production lines from factories in China, Hungary and Mexico to Vietnam.