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Nokia Announces Heads of Agreement to Sell Its Remaining Television Business
June 12, 1996
Following its decision to withdraw from the television business, Nokia has signed a Heads of Agreement to divest its remaining television related business in July, 1996. According to the agreement, Nokia will sell the television production in Turku, Finland and the machinery and equipment of the Bochum television factory to Semi-Tech (Global) Company Limited from Hong Kong. The agreement also includes Nokia´s international television sales activities, right to use Nokia´s television and video-recording related technology, and the brand rights for Finlux, Luxor, Salora, Schaub-Lorenz and Oceanic. Semi-Tech can also use the brand name Nokia in its televisions, VCRs and related products based on Nokia technology until the end of 1999.
The Heads of Agreement does not include the tuner factory in Turku, Finland. The factory, producing components to various Nokia multimedia products, has an employment of 120 people.
"Turku TV-operations will be an essential part of the Semi-Tech world-wide consumer electronic business," says Mr Tapio Hintikka, President of the Nokia General Communications Products Business Group.
According to Mr Hintikka, the closing of the Nokia´s television factory in Bochum and the components factory in Ziemetshausen proceed as planned. The remaining Nokia´s television related manufacturing will be terminated in Germany in September, 1996.
The negative impact taken in connection with the discontinuation of the television business has been covered by the charge in the Nokia financial statements in 1995.
Semi-Tech (Global) Company Limited is controlled by Semi-Tech Corporation, a publicly listed company based in Toronto, Canada with its shares traded on the Toronto Stock Exchange and the Montreal Stock Exchange. Semi-Tech Corporation is the ultimate parent company of the Semi-Tech Group. The consumer electronic arm of the Semi-Tech Group, Akai Electric Co. Limited manufactured over five million TV-sets last year.
The Semi-Tech Group owns, among other things, a series of famous companies around the world: G.M. Pfaff A.G., the leading and most prestigous sewing machine company in Europe; the Singer Co. N.V., the world´s leading sewing and consumer durable distribution company; Sansui Electric Co. Ltd, and Akai Electric Co.Ltd., both of the worlds´ leading electronic companies based in Japan. The Group had a turnover approximately US$ 5 billion (HK$ 31 billion) last year and employs about 100,000 people in over 120 countries.
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