Alibaba Group to acquire AGTech Holdings

| By iGB Editorial Team
Chinese e-commerce giant Alibaba Group has agreed a deal worth HK$2.4 billion (€278.8 million/$307.7 million) to acquire domestic sports lottery software and system developer AGTech Holdings, in a move that will mark the firm’s return to the country’s lottery market.

Chinese e-commerce giant Alibaba Group has agreed a deal worth HK$2.4 billion (€278.8 million/$307.7 million) to acquire domestic sports lottery software and system developer AGTech Holdings, in a move that will mark the firm’s return to the country’s lottery market.

Under the agreement, Ali Fortune Investment Holding, the main financial affiliate of Alibaba, will take HK$1.68 billion in AGTech shares and HK$712.6 million of convertible bonds in the firm, amounting to a 59.54% stake in the company upon full conversion.

AGTech already runs lotteries with a number of providers in China and will now expand its games, hardware and distribution services across the country, which operates under strict governmental regulations regarding lottery businesses.

Both Alibaba and Ali Fortune will subscribe to AGTech’s shares at approximately HK$0.35 apiece, while both companies will also support AGTech with cloud computing technology.

Alibaba, which owns 60% of Ali Fortune, suspended the operation of its lottery business in February of last year over regulatory restrictions.

In a conference call in September, the e-commerce company cited this as one of the key reasons behind a drop in earnings.

Related article: China reveals unlucky lottery numbers

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