Spice Mobility has informed that it will sell a 49% stake in its subsidiary Spice Online to Digitone, a subsidiary of Beijing Digital Telecom Company, in a BSE filing. With the stake sale, Spice Online would get help in gaining experience from the Digitone in the wholesale distribution of electronic devices including mobile phone handsets.
The Beijing Digital Telecom Company informed that it will acquire the stake for $2.5 million from Spice Mobility and provide a loan for the same amount after the acquisition, in a filing to the Hong Kong stock exchange.
It also informed that it will form a joint venture in India with Omni Ventures. The company will hold a 60% stake and remaining 40% will be held by Omniventures. Beijing Digital Telecom Company made a capital commitment of $2.5 million and a shareholder loan for the same amount. The joint venture will mainly be engaged in manufacturing and selling mobile phones and accessories.
Earlier this month, Spice Mobility had informed that Hindustan Retail had decided to transfer 100% stake in Spice Online Retail to Ominiventures. It would make Spice Online Retail and its subsidiary company Hotspot Sales & Solutions wholly owned subsidiaries of Ominiventures. The same month, Spice Online Retail also incorporated Hotspot Sales & Solutions Private Limited as a 100% owned subsidiary company to engage in the business of telecom devices.
Last Month, Spice Mobility informed that it would acquire the entire equity stake in Omniventures and New Spice Solutions, in a BSE filing. This acquisition will make both the companies wholly owned subsidiaries of Spice Mobility.
Financials: Spice Mobility’s mobile devices business continued to face losses. The segment posted a net loss before tax of Rs 24.84 crore for the quarter ended March 31st 2016, compared to a loss of Rs 24.71 crore in the previous quarter. Year-on-year, the company’s losses decreased as it reported a loss of Rs 69.79 crore the same quarter last year.
Its mobile devices business continues to dominate the revenues, accounting for 83.76% of the company’s total revenues for the quarter which stood at Rs 380 crore. The mobile devices segment accounted for 85.8% of the company’s revenues in the preceding quarter.
In January, Spice Mobility had acquired a 22.54% stake in Delhi-based Sunstone Eduversity, in an all cash deal, but the financials were not disclosed.
In July 2015, it had acquired a 26% stake in telecom technology solutions providers Creative Functionapps Lab for an undisclosed amount.