In a new line in the digital market: Fox Group owned Harel Wiesel Reported yesterday to the stock exchange on entering into agreements with Hot Mobile For the establishment and operation of a dedicated concept store chain, under the RED brand. The initial investment in the project amounts to NIS 22 million.
The new network will market and sell a variety of mobile devices, tablets, communications products, multimedia and accessories from manufacturers, including Apple and Samsung. The partnership will also deal with the marketing of HOT’s cellular communication services as well as the launch of an online commerce site.
As part of the activity, products will be launched that will be branded in the chain’s private label, and maintenance and warranty services will be provided to customers. HOT and Fox will be limited partnerships while control of the general partner will also be maintained by HOT. In accordance with the business plan presented, the partnership will establish 30 stores nationwide in the first three years of its operation. The opening of the first store and the launch of the e-commerce site are planned for the third quarter of 2021.
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In accordance with the agreement, after two years, the parties will examine the possibility of expanding the partnership’s activities to other countries. Network products will be provided by HOT on a cost basis. The partnership will be entitled to commissions for the marketing of HOT’s cellular communication services in accordance with the mechanism agreed between the parties.
The agreement also includes agreement on the structure of the board of directors appointed by five directors: three of whom will be appointed by HOT and two by Wiesel. The decisions will be made by a majority of votes, except for special decisions in respect of which the consent of the parties will be required. As stated, according to Fox’s assessment and based on the business plan, the company’s share in investments in the partnership will amount to NIS 22 million in its first 3 years of operation.