Chinese e-commerce giant Alibaba is buying 59.45 percent of Hong Kong-listed AGTech, and will make AGTech be its exclusive lottery platform provider for its online lottery customers.
Ali Fortune Investment, which is 60 percent-owned by Alibaba and 40 percent by Alibaba’s finance arm Ant financial, will buy 4.817 billion shares at 34.7 Hong Kong cents each, for a total of HK$2.39 billion.
Under the deal, AGTech won’t be able to provide its lottery platform to any competitors of Alibaba, though it will be able to run its own online lottery site.
AGTech also disclosed it is buying two companies that would give it the right to sell online lottery products in certain Chinese provinces.
AGTech’s shares slipped 7.54 percent Monday, as the deal comes with the uncertainty surrounding China’s regulations allowing the sale of lottery tickets on the internet, which was suspended nationally last year.
