Alibaba Group to become major shareholder of AGTech

A unit of Alibaba Group Holding Limited is to become the major shareholder of Hong Kong-listed lottery operation,  AGTech Holdings Ltd, for around HK$2.39 billion (US$307.6 million) according to a filing to the Hong Kong Stock Exchange.

Ali Fortune Investment Holding, which is 60 percent owned by Alibaba and 40 percent owned by Alibaba’s Ant Financial, has agreed to buy 4.8 billion shares, worth HK$1.68 billion and HK$712.6 million of convertible bonds in AGTech, becoming a 50.7 percent shareholder of the company.

According to the filing, completion of the deal will take place “on the seventh business day following the unconditional date, or on such other date as the parties may agree.” The unconditional date was due to be :on or prior to 4 September 2016”.

Alibaba plans to expand the company’s lottery, games, hardware and distribution in China, and may potentially leverage on its mobile payment methods, e-commerce channels and other platforms to help AGTech expand.