Berjaya Corp Bhd has finally gotten Vietnam’s elusive yes.
Back in 2010, the Malaysian firm proposed a lottery project to the Vietnamese government. Almost six years later, Vietnam finally decided to award Berjaya and the Vietnam Computerized Lottery One Member Limited Liability Company (Vietlott) an exclusive contract to invest and operate a nationwide computerized lottery for 18 years, The Star reported.
The Hanoi Department of Planning and Investment issued the crucial investment registration certificate to Berjaya and Berjaya Sports Toto Bhd, according to the company’s Bursa Malaysia filing.
The certificate covers “investment for procurement and operation of the technical system, equipment, technology, software and computerized lottery in Vietnam.”
The lottery project is expected to cost a total of RM919.18 million (US$210.58 million). According to Berjaya, the project will be funded “through internally-generated funds and/or borrowings.”
The Vietnam lottery project will be carried out via Berjaya Gia Thinh Investment Technology Joint Stock Company (Berjaya GTI), a subsidiary incorporated in Vietnam. Berjaya GTI is 51 percent owned by Berjaya Lottery Vietnam Limited (BLV), which, in turn, is 80 percent owned by Berjaya Corp. and 20 percent owned by Berjaya Sports Toto Bhd (BToto).
‘[Berjaya Corp] and BToto will make the necessary announcements once the business cooperation contract has been executed,” the companies said in a joint statement.
Under the deal, both Berjaya Corp and Vietlott agreed not to invest, participate in, directly or indirectly in any other project connected with computerized lottery business in Vietnam. Vietlott is currently the only enterprise allowed to conduct computerized lottery operation in the country. Two years ago, Berjaya Corp. entered a business cooperation contract with Vietlott after edging out five other international lottery operators that also submitted their proposals to Vietlott.
“The project represents an opportunity for the BCorp Group to further venture into the gaming industry,” the companies said.
Berjaya GTI is expected to launch its first game, a lotto jackpot game, in the middle of 2016 to be followed by a digit game.
“Initially, the project will be launched in Ho Chi Minh city and will be rolled out progressively to reach nationwide coverage in Vietnam within the next five years with some 10,000 terminals,” Berjaya Corp said.