The Russian smartphone with two screens, Yota Devices has closed a transaction to sell 30% of the company Hong Kong holding company, Rex Global, told RBC Director of Marsfield (manages the assets of the Fund Telconet Capital) Ekaterina Lapshina.
Rex Global has acquired 30% of Yota Devices at Fund Telconet Capital Sergei Adoniev and albert Avdolyana for $46,225 million in addition, Rex Global has committed itself to pay off some debt Yota Devices to the Fund: loan issued by Yota Cyprus to Finance operating activities in the amount of $7 million (subsequently the amount may be increased to $15 million) and loan of us $27 million for “daughter” Yota BVI. The holding company also has exclusive rights to intellectual property, Yota Devices in China for seven years.
Telconet have remained in the ownership of 34.9% of Yota Devices. Another 25.1 percent belongs to the state Corporation “rostec”, 10% of the shares owned by the management of Yota Devices, including the company’s CEO Vladislav Martynov. In an interview with “Vedomosti” Martynov said that received $46 million will be spent on the development of the third generation smartphone. “Dual SIM, powerful battery, premium design, lower cost, and hence more attractive for the user the price”, — Martynov has described the future novelty.
Yota Devices, which appeared in 2011, releases smartphones under the brand name YotaPhone. The company has created Martynov and his friend Denis Sverdlov, at that time, the head of WiMAX-the operator “Skartel” (brand Yota). In 2013, the market appeared the first model of the YotaPhone — a smartphone with two screens, one of which is made on the basis of electronic ink (e-ink and is always on. The cost of production of the first model YotaPhone amounted to $50 million, reported by “Vedomosti” with reference to Martynov in October 2014. Now on the market represented the second smartphone — the YotaPhone 2. Martynov said that the production cost of the YotaPhone 2 is $420.
The Yota Devices opened offices in Europe, Asia, UAE, China. Sales of the first YotaPhone amounted to 30 thousand devices, the company said. According to the research company IDC, within four years of operation, Yota Devices it has shipped 70 million smartphones worldwide. Its revenue for the first nine months of 2015 was $15.9 million, the loss was $30.7 million, follows from the disclosure of Rex Global. In Russia revenue was $8 million, Asia — $3.3 million; other countries — $4.5 million over this period. CEO of “Rostec” Chemezov said in an interview with RBC in December 2015 that the YotaPhone “the demand is high for a startup, including abroad”.
In 2015 Yota Devices has increased the sales of YotaPhone in comparison with 2014 for 10% to 37,2 thousand devices, previously reported by Marsfield. 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 product launch in 2013 before the end of 2015 has sold 96 thousand of smartphones, the company claimed.
A Hong Kong buyer
The Hong Kong holding company, Rex Global Entertainment Holdings Limited (formerly China Gamma Group Limited) operates in the markets of China and other Asian countries. To deal with Yota Devices in the portfolio of the holding has not been technology companies: Rex Global has invested in real estate, entertainment, games, construction materials, etc., the holding company is traded on the Hong Kong stock exchange since 1973. Revenue for the 2015 fiscal year amounted to 80.5 million Hong Kong dollars (about $10.4 million at the exchange rate on April 22, 2016). The capitalization of the company as at 22 April 2016 — 2.04 billion Hong Kong dollars (about us $263 million).