|Leading mobile Internet, e-commerce and gaming provider PacificNet has announced that two of its Chinese subsidiaries, PacificNet Technology (Shenzhen) Ltd and PacificNet Games Ltd, have entered into an agreement to acquire 51 percent of Guangdong Poly Blue Express Communications Co Ltd.|
The acquisition will enable the American company to participate in China's rapidly growing State-sponsored legal gaming and electronic lottery market, as Guangdong is a major operator approved by the Central Government’s Welfare Lottery Center to develop and operate real-time electronic paperless lottery services.
'We are very pleased with this acquisition,' said Victor Tong, President of PacificNet. 'Paperless e-lottery is an area where we see potential for growth in the Chinese market. As player returns are increased from the current 55 percent payout to the 65 percent planned, we feel the market for legalised lottery in China will increase substantially and the market for new video lottery terminals will blossom.”
The agreement is subject to the successful completion of customary due diligence and final documentation and will see PacificNet Technology (Shenzhen) Ltd acquire 34 percent while PacificNet Games Ltd will have 17 percent of Guangdong with the investment structured dependent on the achievement of certain profit milestones.