Hong Kong-listed Century Entertainment International announced on Wednesday the formation of a joint venture with World Platinum Technologies Inc. (WPT) to develop gaming system platforms and content across the Asia Pacific region.Â
The partnership creates a new entity, Konphil Technology Company Limited, with Century Entertainment holding a 51 percent stake and WPT controlling 49 percent.
According to a filing to the Hong Kong Stock Exchange, the joint venture will focus on research, development, marketing, and sales of gaming system platforms and related content throughout Asia Pacific markets. WPT, a Philippines-incorporated gaming system service provider, brings specialized expertise in developing gaming platforms and content to the partnership.
As part of the agreement, Century Entertainment will issue up to 25.6 million new shares to WPT, representing approximately 20 percent of the company’s current issued share capital. The shares will be issued at HK$0.62 ($0.08) each, representing a discount to recent market prices. An initial 12.8 million shares will be issued immediately, with an additional 12.8 million shares contingent upon the joint venture achieving annual gross revenue of at least HK$100 million ($12.5 million) within 15 months.
The partnership grants Century Entertainment non-exclusive rights to use, distribute, and sub-license WPT’s proprietary gaming system platform and related content. The joint venture’s board will comprise five directors, with Century Entertainment appointing three and WPT appointing two.
Century Entertainment cited growth potential in gaming platforms across Asia Pacific countries as the primary motivation for the partnership. The company aims to leverage its existing Southeast Asian gaming business experience combined with WPT’s technical expertise to expand into other regional markets.
