Fujitsu in talks with Polaris Capital Group for sale of its mobile phone unit

The effort is in line with Fujitsu’s intent on offloading its non-core businesses.

On Friday, Fujitsu Ltd stated it is holding talks with Polaris Capital Group to sell its mobile phone business to the investment fund, a deal which could fetch as much as $456 million (50 billion yen).

Japan’s Nikkei news agency stated that an official agreement is expected to be reached by the end of this month.

As per Nikkei, Fujitsu is negotiating the sale of a major portion of its business to Polaris which aims to list it in the years to come..

Fujitsu has clarified that a decision to this effect has yet to be made.

Tokyo-based Polaris was not immediately available for comment.

With the news reaching the market, Fujitsu’s shares were up by 1.6% in a market that was broadly flat.

Japanese smartphone makers have been struggling to compete in the global market and have fallen behind peers including Apple, Samsung and low cost Chinese smartphone manufacturers.

Significantly, the Japanese firm has been offloading its non-core businesses: in 2017 it agreed to sell a majority stake in its personal computer business to the Lenovo Group for $269 million.

Fujitsu aims to focus on its core IT services business is expected to continue operating its Arrows brand under Polaris, said Nikkei.

In 2016 having spun-off its mobile phone operations business into a separate company Fujitsu has drawn interests from investment firms including Britain’s CVC Capital Partners Ltd, said the Nikkei.

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