Halex International Sdn Bhd has entered into a memorandum of understanding with Cambodian lottery firm VW Win Holdings plc.
In a filing with Bursa Malaysia, Halex said the MoU was signed with VW Win majority shareholder Goh Teik Keng with intent to acquire at least 51 percent stake in the Cambodian lottery firm.
VW Win, a private limited company incorporated, currently operates a licensed lottery gaming business in Cambodia and also has plans to apply for and operate an online gaming license in the country.
Halex, however, made it clear that the proposed acquisition still hinges on the fulfillment of several conditions by December 10.
Among the conditions is that Halex must receive a written approval from authorities in Cambodia in connection with the proposed sale and purchase or shares. VW Win must also complete a legal and financial due diligence on the business, and obtain the approval from shareholders, Bursa Malaysia and Security Commission Malaysia in relation to the proposed acquisition.
More importantly, the MoU states that VW Win must obtain a valid online gaming license in Cambodia.
Goh, on the other hand, has agreed to provide a valid guarantee that the group’s net profit after taxes will not be lower than $3 million for a period of three years starting financial year 2016.
Laws in Cambodia don’t expressively forbid online gambling in the country, but this hasn’t stop law enforcement agencies from moving against operators who set up shop with the borders. Still, online sportsbooks have set up shops in areas including Poipet, the special economic zone that borders Thailand.
Last year, the kingdom started the ball rolling on the long-overdue updates to its gaming laws. Ros Phirun, spokesman of the Ministry of Economy and Finance, said that while Cambodia wasn’t ready yet to issue licenses for online betting, “it is in the process of being studied.”