Mobile Communications - Siemens Selling Mobile Unit to BenQ
June 10, 2005
Siemens announced the sale of its beleaguered mobile phone unit to BenQ. The handover is scheduled to occur during Siemens' fiscal fourth quarter, which ends September 30th. Under the terms of the deal, Siemens will acquire 50 million euros of BenQ stock, roughly equivalent to 2.5% of BenQ's total capitalization, as well as pay an additional 250 million to sustain the loss-making business. BenQ will be granted rights to the Siemens brand for five years, and the unit will remain headquartered in Munich. The deal is still subject to the approval of BenQ shareholders and antitrust authorities.