Nokia we knew has invested in HMD Global that manufactures Nokia phones and smartphones. The Nokia 2020 annual report however reveals that it has ownership interest in HMD Global.
The 2020 annual report reveals an interesting fact about Nokia’s relation with HMD Global. HMD Global is essentially a licensee to Nokia and pays royalty for using it brand name for Nokia phones and smartphones. But in its 2020 annual report Nokia has revealed that it has around 10.10% ownership interest in HMD global.
Talking about the ownership interest in HMD Global, Nokia revealed that it granted a EUR 60 million loan to HMD in 2019. This loan was a convertible one that Nokia could convert into equity interest in HMD Global. In 2020, exercising this option Nokia acquired an ownership interest recording a EUR 63 million investment in HMD Global.
What this tell us is that Nokia is not only a brand-licenser but also one of the owners of HMD Global. That gives it a better say in how HMD Global is conducting the Nokia Phone business.
Thanks Ed for the tip. Cheers!!