BUSINESS

AGTech beefs up with entry of heavyweight investor

TAGs: AGTech, Business, gambling, Macau

agtech-china-lotteryChinese sports lottery operator AGTech Holdings Ltd. told the Hong Kong Stock Exchange earlier this week that has come to an agreement that would involve the purchase of AGTech shares by Vitor Cheung Lup Kwan, a prominent Macau businessman and Legislative Assemble member. According to the filing by AGTech, it disclosed to the stock exchange its plans of issuing 406.5 million new shares before May 31, a number that represents 9.5 percent of the company’s issued share capital.

The available shares would then be sold to at least six investors, the biggest chunk of which will go to a company owned by Cheung, who, incidentally, is also the  managing director of the Pousada Marina Infante in Cotai and one of the head of one of the companies that granted the land where Galaxy Entertainment’s StarWorld and Grand Waldo casinos now stand. AGTech’s plan to open its shares to investment,  particularly with Cheung,  is grounded on the prevailing wisdom that a partnership with the Chinese businessman would open the company up to explore numerous entertainment and leisure opportunities that may present themselves in the future.

Such a deal with the Macau businessman does come with an added caveat for the sports lottery operator: In addition to receiving the biggest slice of the shares pie, Cheung will also have the opportunity to tack in another HK$85 million in the company by way of exercising an option in the contract to subscribe to another five percent of the company’s capital, with each share priced at just HK$0.40.

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