Semi-Tech buys Nokia TV business

Semi-Tech (Global) yesterday said it had struck a deal with Finland-based telecommunications group Nokia to buy parts of its loss-making television business for a still unsettled amount.

As it has done with previous purchases, Semi-Tech said it planned to inject capital and management expertise to turn the business around.

Earlier this year Nokia flagged its intention to withdraw from the business, which last year recorded sales of HK$4.07 billion.

Under the deal, which is still subject to a number of conditions, Semi-Tech is to buy most of the company's operations, involving 1,500 staff in television and related products, all of Nokia's European sales and marketing network, a production facility in Finland and equipment in Bochum in Germany.

The deal will also include the rights to brand names such as Luxor, Finlux, Salora and Oceanic, as well as the Nokia name until the end of 1999.

Semi-Tech chairman and chief executive James Ting said his company would make use of Nokia's network to distribute products made by its other subsidiaries, such as Kong Wah, Tomei and Japanese electronics groups, Sansui and Akai.