Nortel, which earlier this year entered into bankruptcy proceedings, is now seeking a buyer for its majority stake (50% + 1 share) in LG-Nortel, the company's Korean joint venture with LG Electronics. Nortel has made this decision to secure a sound future for the LG-Nortel business, its valued customers and employees.
The company notes that LG-Nortel is a profitable, standalone business with a strong balance sheet, and has not filed for creditor protection. The joint venture has enjoyed solid revenues and profits since its establishment in November 2005, with several significant customer wins in Korea and abroad. The business achieved a Management Operating Margin of $341 million, or 27%, in 2008, and Management Operating Margin for the first quarter of 2009 of 26%. http://www.nortel.com
http://www.lg-nortel.com
- In November 2005, LG Electronics and Nortel officially launched their joint venture, LG-Nortel offers communications and networking solutions in the wireline, optical, wireless and enterprise markets in South Korea and the rest of the world.
