Earlier this week Rex Global Entertainment, a Hong Kong-based investment company, announced that it has acquired a 64.9% stake in Russian smartphone manufacturer Yota Devices for $100 million.
The shares were purchased from Telconet Capital Limited Partnership. The remaining shareholders are Russian state corporation Rostec (25.1%) and Yota management (10%), Yota Devices CEO Vladislav Martynov told Russian business media RBC.
In addition, Rex will invest $50 million in Yota to develop the product line, including a new YotaPhone 3.
The Russian company had been looking for investors for one year and a half, said Martynov, while Rex “was looking for an opportunity to enter the smartphone market.”
The YotaPhone was introduced in 2013 as Russia’s first 4G smartphone following two years of R&D efforts involving both Russian and foreign players. Its most touted attraction is a dual-screen that includes includes a low-energy, black and white e-paper display – a technology which is usually seen on e-book readers such as Amazon’s Kindle.
Yota Devices introduced YotaPhone 2 in December 2014, with sales launched in Russia and across the globe.
In February this year, the Russian mobile phone maker inked a deal with Potevio, a leading Chinese distributor of mobile electronics, to enter the local market.
Founded in 1973, Rex Global Entertainment usually invests in leisure, tourism, entertainment and gaming related businesses in Asia. Its portfolio also includes companies operating in the property business as well as gamma ray irradiation services.
