Chinese consumer electronics manufacturer Skyworth Digital Holdings Ltd<751>,  announced that it will sell 80% stake in its mobile handset unit to Shenzhen Baoyi Communication Technology Co. Ltd and its affiliate Shine Success Ltd.

Reports said Skyworth Group's two wholly-owned subsidiaries Skyworth-BVI and Skyworth-RGB have signed agreements with Shenzhen Baoyi Communication and Shine Success. Newspaper reports said Skyworth Digital is selling the stake due to the weak performance of its handset unit.

According to the agreements, Skyworth-BVI will sell a 40% stake in its mobile handset subsidiary, Skyworth Mobile Communications (Shenzhen), at a price of HK$1.13 per share to Shenzhen Baoyi Communication, which is a supplier of the former. Skyworth-RGB, which has 60% stake in Skyworth Mobile, will sell 40% at a price of HK$1 per share to Shine Success.

According to the announcement, Skyworth Group will retain 20% stake in Skyworth Mobile  and Skyworth Mobile will cease to be a subsidiary of Skyworth Digital, after the deal. However, the handset unit will be entitled to use the Skyworth brand name for five years, free of charge.

Skyworth Digital specializes in manufacture and sale of consumer electronic products and upstream accessories. The company’s business segments include television products, digital set-top boxes, mobile phones and other electronic products.

 Source:China Knowledge