ACQUISITION WOES:The expected losses are due to the firm’s acquisition of Nokia’s assets from Microsoft for US$350 million, with costs to be booked in the second half
Date: Apr 05, 2017
By: Staff writer, with CNA
FIH Mobile Ltd (富智康) yesterday issued a profit warning for the first half of the year in a statement filed with Hong Kong Exchanges and Clearing Ltd.
The Hon Hai Precision Industry Co (鴻海精密) subsidiary said it expected to post a net loss of less than US$110 million for the six-month period ending in June, as the acquisition of Nokia’s feature phone business weighed on its bottom line.
Joining forces with Finland-based HMD Global, the company in December last year completed a deal to acquire Nokia’s assets from Microsoft Corp for US$350 million.
The acquisition price was only a small fraction of the US$7.2 billion Microsoft paid for them in 2014. [FULL STORY]