AMSTERDAM (AFP) - Dutch electronics giant Philips said that it had signed a letter of intent to transfer its remaining mobile phone activities to the China Electronics Corporation (CEC).

Philips' mobile phone division currently has an annual turnover of about 400 million euros (502 million dollars) and employs 240 people mainly in Asia and Eastern Euope.

"Under the terms of the letter of intent, CEC will receive a global license to market and sell mobile phones under the Philips brand for the coming five years," Philips said Thursday.

The company added that the transaction, which was still subject to shareholder and regulatory approval, was expected to be completed by the end of this year