Holding Rex Global Entertainment from Hong Kong has decided to abandon a one-time deal to buy a controlling stake in the company Yota Devices, which is the developer of the smartphone YotaPhone. The holding may acquire the manufacturer in parts, Vedomosti wrote with reference to the holding's application.

Rex Global initially planned to acquire 64.9% of shares in Yota Devices for $100 million from Telconet Capital Limited, which belongs to entrepreneurs Sergei Adonyev and Albert Avdolyan.

However, the listing committee of the holding, whose shares are traded on the Hong Kong Stock Exchange, suspected a deal with Telconet in the so-called reverse takeover, when the object of purchase is worth more than the buyer himself, according to a statement by Rex Global.

The Hong Kong holding intends to acquire only 30% of shares of Yota Devices for $46.2 million. The entire company Rex Global is estimated at $ 154 million.

The total debt of Yota Devices, according to Rex Global, increased from $24.3 million in 2013 to $65.2 million at the end of 2014. Net loss of the manufacturer YotaPhone increased from $19.9 million to $42.3 million for the same period.

Rex Global notes in its announcement that even after the acquisition of 30% of Yota Devices, the Hong Kong holding company will receive the exclusive right to use the patents and trademark YotaPhone in mainland China for seven years.