Asia Express - Mobile Communications
Skyworth Sells 80% Stake of Mobile Phone Business Unit
June 27, 2008
Chinese consumer electronics manufacturer Skyworth announced on June 25 that its wholly-owned subsidiary Skyworth BVI has sold a 40% stake in its money-losing mobile phone unit Skyworth Mobile to Shenzhen Baoyi for a nominal price of one RMB (US$0.15; US$1=6.9 RMB), Beijing Times reported.

Meanwhile, another Skyworth subsidiary, Skyworth RGB, which held 60% stake in Skyworth Mobile, has sold 40% stake in the mobile phone unit to Shine Success for HK$1 (US$0.13; US$1=HK$7.8). After said transactions, Skyworth retains a 20% stake in Skyworth Mobile, according to the same source.

Pursuant to an agreement reached by the three parties, Skyworth will add an initial amount of 40 million RMB (US$5.83 million) into the mobile unit, and Baoyi and Shine Success will invest a minimum of 50 million RMB (US$7.3 million) for operating expenditure, XFN News reported.