The Hong Kong holding company will become the third manufacturer YotaPhone for $46.2 million

Shareholders Hong Kong investment holding Rex Global Entertainment Holdings at an extraordinary meeting on April 22 approved the purchase of 30% of the company Yota Devices, the manufacturer of the world’s first smartphone with two screens YotaPhone. This is stated in the message Rex Global. Its share in the manufacturer of YotaPhone will sell co-owners of Telconet Capital Fund Sergei Adonyev and albert Avdolyan. That the meeting of shareholders approved the transaction and it must be closed before the end of April 2016, the report said the company Marsfield, which manages the assets of Telconet.

After the transaction at Telconet will remain 34.9% of Yota Devices. Even 25,1% owned by the rostec state Corporation, 10% owned by the CEO of Yota Devices Vladislav Martynov and other managers of the company.

Rex Global is also committed to repay part of the debt Yota Devices before Telconet: a loan issued for funding the operating activity in the amount of $7 million (subsequently, the amount may be increased to $15 million) and a loan of $27 million for “daughter” Yota BVI, registered in the British virgin Islands. The Hong Kong Fund will receive exclusive rights to intellectual property, Yota Devices in China for seven years.

In October 2015 Rex Global was going to buy 64,9% Yota Devices from Telconet for $100 million and to repay $7 million loan the smartphone maker to shareholders, reported. In February 2016, as the newspaper “Vedomosti”, the Hong Kong holding company has changed the terms of the deal because of claims of the listing Committee Hong Kong exchange, where shares are traded Rex Global. The Committee suspected that the deal with Telconet may be a so-called reverse takeover, when the object of purchase is worth more than the buyer.

“The current configuration of the transaction satisfied with all the shareholders”, — said the newspaper “Kommersant”, the Director Ekaterina Lapshina Marsfield in March 2016. According to her, Telconet believes the deal beneficial for yourself and for your logical strategy. “The Fund is a financial investor, therefore, maintains a strategy of gradual exit from the asset. If Telconet will get a good offer, the Fund will consider such a deal,” said Lapshin.

Vladislav Martynov did not respond to a request .

The Hong Kong holding company, Rex Global Entertainment Holdings Limited (formerly China Gamma Group Limited) operates in the markets of China and Asia. Before the deal with Yota Devices in the portfolio of the holding has not been technology companies. Rex Global has invested in sectors such as real estate, entertainment, games, construction materials and services that offer services to sterilize food and medical instruments using gamma radiation. The holding company is traded on the Hong Kong stock exchange since 1973 (Ticker: 164). Revenue for the 2015 financial year (ended 31 March) amounted to 80.5 million Hong Kong dollars (approximately $10.4 million at the exchange rate on April 22, 2016). The capitalization of the company as of April 22, 2016 — 2.04 billion Hong Kong dollars (about us $263 million).

Yota Devices appeared in 2011. It was created by Martynov and his friend Denis Sverdlov, at the time, the head of WiMAX-the operator “Skartel” (brand Yota). Rostec, a former shareholder of Scartel, has granted an option to buy shares in Yota Devices. This option the Corporation has implemented in 2013, before going on the market the first model of the YotaPhone — the world’s first smartphone with two screens, one of which is made on the basis of electronic ink e-ink and always stays on. The cost of production of the first model YotaPhone amounted to $50 million, told “Vedomosti” with reference to Martynova in October 2014. Now on the market presents the second model of the smartphone — YotaPhone 2.

The Yota Devices opened offices in Europe, Asia, UAE, China. Sales of the first YotaPhone amounted to 30 thousand devices, according to the company. According to the research company IDC, within four years, Yota Devices it has shipped 70 thousand smartphones worldwide. Its revenue for the first nine months of 2015 was $15.9 million, a loss of $30.7 million, the disclosure of Rex Global. While in Russia the company’s revenue totaled $8 million, Asia — $3.3 million; other countries — $4.5 million over this period. CEO of Rostec Sergey Chemezov said in an interview in December 2015 that the YotaPhone “the high demand for startups, including abroad”.

In 2015 Yota Devices YotaPhone increased sales compared to the year 2014 by 10% to 37,2 thousand devices, previously reported by the Rockdale. In addition, the company Jiliean, the Chinese partner of Yota Devices, has produced and sold more 21 thousand smartphones during the reporting period. With these devices since the launch of the product in 2013 until the end of 2015 has sold 96 thousand of smartphones, the company claimed.