1923 Investments plc, a company owned by Hili Ventures, on Thursday announced that it has sold its shares in E-Lifecycle Holdings GmbH, a German subsidiary that operates as a franchisee of iRiparo, an Italian mobile device repair and refurbished phone selling company.

1923 Investments had first communicated its intention to sell the company last week, with a representative at the time noting that an update should be released “in the coming weeks.”

The latest announcement confirmed that the sale of the shares has become effective after “the successful completion of the conditions precedent,” with shares in the Düsseldorf-registered company being transferred to Halil Yöyen.

The consideration paid to the company upon execution of the share purchase agreement amounts to €1 and the overall terms of the agreement are considered “customary for a transaction of this nature,” the selling company stated.

1923 Investments stated that E-Lifecycle was expected to generate less than one per cent of the company’s revenue in 2023, yet actual performance “fell short of this target, despite significant efforts to gain market presence and develop the business.”

The company added that even though the sustained losses were expected, the Board of Directors then proceeded to reconsider the viability of this “non-core investment.” “Due to the increasingly challenging market conditions and trade outlook for Germany, the company has decided to exit the business,” 1923 Investments said.

When the company’s most recent interim report was published in August, covering the period ended 30th June 2023, 1923 Investments had not mentioned its intention to sell the German subsidiary. It had stated that it will “continue to sustain E-Lifecycle Holdings in its start-up phase to continue to gain market presence and extend its service and product portfolio.” However, it expected the €1.5 million loss incurred in the opening six months of 2023 to be followed up by further losses in the second half of the year.

The iRiparo business is a relatively new one for the group, as 1923 Investments signed a master franchise agreement with iRiparo s.r.l in June 2022. Through the terms of the agreement, 1923 Investments was to represent the brand by opening and managing a network of stores targeting high quality mobile device repair and the sale of refurbished phones and accessories in 31 countries, starting off in Germany. Operations commenced in October 2022, and as at the end of June 2023, it operated 10 retail outlets, in a partnership with UZED.

iRiparo was established in 2009 as a website, yet today it also has a presence in Italy, France, Spain, and the UK, with a network of over 380 stores.