TMT
By 22 August, 2016
Chinese phone retailer Beijing Digital acquires Saholic.com
Saholic

In an instance of an offline retailer buying an ecommerce property, Chinese handset retailer Beijing Digital Telecom has acquired 49% stake in Spice Online Pvt. Ltd, the online retail arm of Spice Group, according to BSE filings.

Beijing Digital picked the stake through its Singapore-based subsidiary Digitone, run by New Idea Investment Pte. Ltd.

In an earlier filing, the company had said that it would be acquiring the stake for $2.5 million (about Rs 17 crore) from Spice Mobility Ltd and provide a loan of an equal amount.

In a separate filing, Spice Mobility had said that the stake sale will help it expand to the business-to-business (B2B) e-commerce market and gain from the investor’s experience in the wholesale distribution of electronic devices.

In another transaction, Beijing Digital had said that it will take a 60% stake in a joint venture with Omni Ventures Pvt. Ltd, a wholly owned subsidiary of Spice Mobility, for $2.5 million and extend a shareholder loan of an equal amount.

The Indian company will hold the remaining 40% stake in the new venture.

Spice Online operates Saholic.com, a shopping portal for mobile phones, tablets, laptops and accessories.

On June 10, Spice Mobility said in a regulatory filing that another unit Hindustan Retail Pvt. Ltd agreed to transfer its 100% stake in Spice Online to Omni Ventures.

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