GGRAsia – Lottery firm AGTech extends deadline on target business

Lottery firm AGTech extends deadline on target business

Oct 14, 2014 Newsdesk Industry Talk, Latest News, Rest of Asia

AGTech Holdings Ltd, a supplier to mainland China’s regulated lottery market, says it is still pursuing a deal to purchase an offshore company called Score Value Ltd for up to HKD489.5 million (US$63 million).

AGTech said on Monday that an exclusivity period on the potential deal had been extended for two months, with a new expiry date of December 14.

The firm didn’t give details in its latest filing to the Hong Kong Stock Exchange’s Growth Enterprise Market – nor in its original July 15 filing announcing the acquisition talks – on the nature of the business held by Score Value, which is registered in the British Virgin Islands.

If the deal goes ahead it is likely to involve a maximum of HKD189.5 million in cash and HKD300 million by allotment and issue of consideration shares, AGTech said in its Monday filing.

In August, the firm reported that its first half losses had widened year-on-year by nearly 70 percent to HKD88.9 million from HKD52.7 million in the year prior period, on declining revenue.

The firm provides equipment including lottery terminals to China’s Sports Lottery Administration Centre.