Chinese electronics manufacturer Bird says that it will transfer all of its stake in Ningbo Bird Sagem Electronic Co., Ltd, to Sagem, with whom it has set up the joint venture company.
Bird holds 50% of the stake of Ningbo Bird Sagem Electronic Co., Ltd. The parties have agreed the total transaction price to be RMB159 million, but the transfer still needs to be approved by the shareholders of the company. After the transaction, Bird will still retain mobile phone research and development, outsourcing, production and sales as its major business, but the company may receive less overseas orders through Sagem. Hence its mobile phone exports and sale income will be reduced.
Bird previously transferred its full stake in Ningbo Sagem Bird R&D Company for an agreed RMB22 million to Sagem, and transferred 23% of its stake in Chongqing Bird Technology Company to Chongqing Sida Technology Development Company in return for RMB441,300. It also handed over its stake in Chongqing Bird Information Technology Company for RMB3 million to a top manager, Zhou Guangzhi.
Due to fierce market competition, Bird's performance has been declining over the past few years. It is expected that the company will use the money from selling the stakes to pay off its debt.