Last Friday, AGTech, a Chinese sports lottery supplier, entered into a Subscription Agreement with a joint venture, 60% owned by Alibaba Holding and 40% by Alibaba’s affiliate company, Ant Financial.
According to the agreement, the partnership will acquire about "59.45% of the issued share capital of the Company (AGTech) as enlarged by the allotment and issuance of the Subscription Shares and the Conversion Shares”.
As stated in an official announcement, the deal is valued at about HK$ 2.388 billion (about US$308 million). Sun Ho will remain as an Executive Director, Chairman of the Board and Chief Executive Officer (CEO) of AGTech.
AGTech is a leading integrated gaming company in China’s lottery market. It is principally engaged in gaming technologies, online and mobile lotteries, and lottery management. Upon the completion of this deal, AGTech will become the exclusive lottery platform of Alibaba.
Proofread by John Devlin.