27 June 2018, India:
Chinese mobile brand Gionee is selling its Indian operations. The deal is expected to close in 2-3 weeks. The deal size is expected to be about ₹200 crore ($29.25 million) – ₹250 crore ($36.65 million).
According to ET report, Pardeep Jain, promoter of Karbonn Mobile’s holding entity Jaina Group, and Vohra signed a letter of intent and non-disclosure agreement with Gionee Communication Equipment, parent company of the Chinese smartphone brand, for acquiring its 74% stake in Gionee India last Thursday in Hong Kong, the sources said. The balance 26% in the company is already with Vohra and his family.
According to report, the buyers will get to use the Gionee brand in the Indian market on lease for 10 years. The lease can be extended further.
Some sources told ET, Vohra and Jain have already indicated to trade partners that they will revive the Gionee brand before the festive season in October with feature-rich yet aggressively priced smartphones that can compete against market leader Xiaomi. Vohra had earlier discussed the possibilities of taking over Gionee India with another Noida-based Indian handset maker, but talks did not fructify and Jain joined the negotiation process.
Arvind R Vohra was Gionee India’s CEO but stepped down in last July.
(Source – ET, Image – Gionee)