Nokia’s bid to sell its UK subsidiary and luxury cellphone unit, Vertu to private equity group, Permira has reportedly reached an advanced stage of talks, the reports coming in confirm. Reports further estimate that if the sale of the luxury unit goes through successfully, then Nokia, which only recently had its credit rating cut to “junk” status by ratings agency Standard & Poor's, will be able to raise roughly 200 million euros. The report further went on to add that there is no word yet indicating the outcome of these talks, but stated that Goldman Sachs would be advising Nokia on the Vertu sale. Financial Times also reports that Permira's decision to buy luxury brand, Vertu doesn't come as much of a surprise, since the brand already owns luxury brands, like Valentino and Hugo Boss.
Luxury handset manufacturer to be sold
Talks about Nokia planning to sell off the luxury handset unit, Vertu first surfaced in early December, last year, wherein it had been revealed that with the money from the Vertu sale, the Finnish company was looking at a business overhaul and aimed at holding its ground in the face of stiff competition in the smartphone market. Permira, however, reportedly isn't the only one to have been in the run for acquiring Vertu. EQT, the Northern European private equity group, has also been in talks about buying the group, however, they haven't been progressive. Vertu, better known as the makers of some of the world's most expensive smartphones by hand, complete with crystal displays and sapphire keys, and precious metal components have been quite popular, despite their high prices. Reports state that some these handsets can cost as much as 200,000 million pounds, speaking of just how expensive owning a Vertu phone can get.