Safran to sell Sagem Mobiles
The objective is to finalize the sale before Q3/2008. Sagem Mobiles still has a 13.4% marketshare in France behind Samsung (29.7%) and Nokia (24.7%), but is almost non-existent in the rest of the world. Sagem Mobiles posted EUR 181 million losses in 2006 and EUR 121 million losses in 2007. Sagem Mobiles recently acquired a total control over its former joint venture in China Ningbo Bird, which encompasses both R&D and manufacturing activities.
Sagem Mobiles is already a partner with Sony Ericsson after an ODM (Original Developer Manufacturer) agreement signed last year covering entry level GSM, GPRS and EDGE handsets. According to several rumors, Sony Ericsson could acquire Sagem Mobiles activity. Analysts also mention LG or Huawei, in search of a presence in Europe, as potential acquirers, as well as investment funds.
Safran has already completed the sale of Sagem Communications, an entity in charge of communication terminals and TV decoders, to The Gores Group for EUR 383 million last January (cf. Smart Insights #08-06).