1923 Investments plc, a company owned by Hili Ventures, has announced that it will be selling E-Lifecycle Holdings Gmbh, a Germany subsidiary operating as a franchisee of the Italian mobile device repair and refurbished phone selling company iRiparo.

In a market update released on Thursday (yesterday), 1923 Investments announced “the execution of a share purchase agreement for the sale of all the shares in E-Lifecycle Holdings GmbH, a company registered with the commercial register of the local court of Düsseldorf under HRB 97170 with registered office in Düsseldorf, Germany.

“The consideration for the shares, together with other relevant details, will be announced following the successful completion of the conditions precedent and closing of the transaction.”

A representative for the company told WhosWho.mt that an update can be expected in the coming weeks. 

The announcement is likely to be something of a surprise for external stakeholders, including bondholders, since the company’s interim financial statement for the period ended 30th June 2023, released in August, made no mention of any intention to sell the German subsidiary.

In the interim report, 1923 Investment said the group “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,” while noting that the €1.5 million loss registered in the first six months of the year will likely increase as more losses are sustained in the second half of 2023.

1923 Investment attribute E-Lifecycle Holdings losses to “the start-up nature of this venture in a new country,” adding that “this loss is in line with the group’s forecast where the business is expected to generate losses in its early years of operation.”

The iRiparo business is a relatively new one for the group, with 1923 Investments having just signed a master franchise agreement with iRiparo s.r.l. in June 2022. Under the terms of the agreement, 1923 Investments was to represent the brand by opening and managing a network of stores dedicated to high quality mobile device repair and the sale of refurbished phones and of accessories in 31 countries, starting in Germany

Operations began in October 2022, and as at 30th June 2023, operated 10 retail outlets, in a partnership with UZED.

The partnership was meant to “live up to the Hili Ventures values of sustainability and impact for good as it operates this new venture in adherence to the principles of the circular economy – the circulation of products and materials, the elimination of waste, and the regeneration of materials.”

iRiparo is also present in Italy, France, Spain and the UK with around 380 stores.