Hong Kong investment holding REX Global Entertainment has acquired a 64.9 per cent of smartphone manufacturer Yota Devices. Its share for $100 million sold Sergei Adonyev and albert Avdolyan, co-owners of Telconet Capital Fund, RBC reports.
As told the General Director of Yota Devices Vladislav Martynov, controlling the smartphone with two screens YotaPhone has acquired the holding company, REX Global Entertainment Holdings Limited from Hong Kong. REX Global has signed an agreement to buy shares at 64.9% of the company Telconet, the amount of the transaction amounted to $100 million Thus, the company-manufacturer Yota Devices the investors valued at approximately $154 million.
Other share of Yota Devices remain from the previous owners — the state Corporation “rosteh” (25,1%) and company management (10%). Under the deal, shareholders can ask REX Global to fully redeem their shares.
According to Martynov, Yota Devices was looking for an investor for a year and a half. Under the terms of the signed agreement, the first phase of the REX Global invests in Russian manufacturer of smartphones Yota Devices $50 million, these funds will be used “on the issue of product line and YotaPhone 3”, he says.
REX Global is engaged in investments in real estate, entertainment, gaming, etc. holding is traded on the Hong Kong stock exchange. Revenue for the 2015 fiscal year, which ended March 31, amounted to 80.5 million Hong Kong dollars (about $10.3 million at the exchange rate on October 21). The capitalization of the company amounted to 1,927 billion Hong Kong dollars (about $250 million) according to 21 October. As noted Martynov, REX Global has established relations on the telecommunications market in China and in Asia overall, which is important to Yota Devices, since China is the most promising market.
For comparison, Lenovo bought smartphone maker Motorola for $2,91 billion in 2014 by paying $660 million in cash (the rest in shares and promissory notes).
The Hong Kong holding company “has been looking for an opportunity to enter the market of smartphones,” says Martynov. According to him, Yota Devices will become the platform to build this business to the holding company.