GGRAsia – AGTech to acquire mobile lottery specialist

AGTech to acquire mobile lottery specialist

Nov 18, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

AGTech Holdings Ltd, a supplier of technology to mainland China’s regulated lottery market, said after Hong Kong trading hours on Monday that it is to acquire all the issued share capital of Score Value Ltd.

The latter is a British Virgin Islands-registered firm involved in the “research and development, quality assurance and sale of hand-held lottery sale equipment, the provision of aftersales maintenance of such devices, and the design of lottery games and system development in the PRC [People’s Republic of China]”, said AGTech.

The deal is for a maximum consideration of HKD489.5 million (US$63.1 million) to be satisfied by maximum of HKD239.5 million in cash and HKD250.0 million via a maximum of 168.9 million consideration shares at an issue price of HKD1.48 per share.

AGTech’s shares – listed on Hong Kong’s Growth Enterprise Market – had earlier closed unchanged at HKD1.14 each.

AGTech had said in a statement on November 12, accompanying its third quarter earnings, that it believed the Chinese government would increase the regulatory progress of the online and mobile lottery systems and distribution market on the mainland, allowing the industry to grow at a faster pace.