500.com takes majority stake in Loto Interactive

The Chinese lottery services provider will acquire shares to take its interest in the company from about 33 per cent to over 54 per cent of all issued capital.

China.- The Chinese lottery services provider 500.com has announced it has entered an agreement to gain a majority stake in partner Loto Interactive Limited.

Providing that shareholders approve the deal, 500.com will acquire 169,354,839 Loto Interactive shares for HK$105m (US$13.5m).

This will increase its stake from 33.7 per cent to about 54.2 per cent of the issued share capital.

Once the operation is complete, Loto Interactive is expected to become a subsidiary of 500.com.

The company added that customers of Loto Interactive’s big data centres are mainly engaged in cryptocurrency mining, an area in which this company is investing heavily.

Further acquisitions

At the same time, Loto Interactive has entered into an agreement to acquire the remaining equity interests in its indirectly held subsidiary, Ganzi Changhe Hydropower Consumption Service from two sellers.

It is reported to have paid RMB88.2m (US$13.6m) in cash.

Loto Interactive currently indirectly owns approximately 51 per cent of the equity interests in Ganzi Changhe.