TAIPEI - Sanmina-SCI Corporation has reported that it has signed a definitive agreement with Foxteq Holdings, a subsidiary of Taiwan's Hon Hai Precision Industry, under which Foxteq will buy some of the US firm's personal computing related operations and logistics businesses in Hungary, Mexico and the US.

The sale is consistent with Sanmina-SCI's move to exit the personal computing business.

"This announcement is in line with our previous statements that we would sell or otherwise exit the personal computing business,  [as it is] no longer integral to the Company's long-term strategy. Since we announced our intentions to exit the personal computing business, several operating initiatives have allowed us to significantly reduce the net assets invested." stated Jure Sola, Chairman and CEO of Sanmina-SCI.

California-based Sanmina-SCI expects that proceeds from the Foxteq transaction, along with funds raised from the sale of other related assets, will be worth between $80-90 million.

Both Hon Hai (also known as the Foxconn group) and Sanmina-SCI are providers of electronics manufacturing services.

Hon Hai confirmed the deal in a filing with the Taiwan stock exchange, indicating that Foxteq signed a contract with Sanmina-SCI, stating that - pending routine procedures and regulatory approvals - the deal should be completed by the end of June.

The company said it cannot give further details, due to a non-disclosure agreement with the US firm.

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