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HomeNewsMacauAGTech agrees to buy owner of Macau Pass for HK$778m

AGTech agrees to buy owner of Macau Pass for HK$778m

AGTech Holdings, a Chinese lottery supplier, said it has agreed to buy the owner of Macau Pass for a maximum of HK778 million ($100 million) to diversify its revenue streams.

Hong Kong-listed AGTech is buying the entire capital of Macau Pass Holdings Ltd, which owns 99 percent of Macau Pass. It’s also buying the remaining 1 percent in the target company.

Macau Pass provides services that enable retailers and other merchants to accept different payment methods from other payment service providers, such as the Alipay e-wallet, so customers can choose their preferred payment methods at checkout.

Macau Pass receives commission income from the merchants for processing the payment.

The company will pay $700 million on closing of the transaction, with the remaining consideration subject to a downward revision mechanism. The deferred payment includes provisions that allow for the deduction of any outstanding debt that has not been agreed by the buyers, as well as any shortfall in the operating cash of Macau Pass. The latter company is required to maintain an operating cash level of MOP5 million.

“The directors are of the view that the acquisition would create tremendous synergies to the Group’s existing business, particularly for the mobile games and entertainment and supply of non-lottery hardware businesses, as well as broadening the revenue base of the group through integrations along the value chain, AGTech said.

The group is one of the leading suppliers of lottery terminals in the PRC, and has the largest market share in the sports lottery terminal market. Since the first half of 2021, the company has also begun to supply non-lottery hardware, such as point of sale terminals in China’s retail market.

The acquisition represents an expansion of the non-lottery hardware business into the Macau market, it said.

In 2018, the company also announced it was expanding in India through a venture with PayTM. The two companies launched casual gaming platform Gamepind.

Through the platform, online users may purchase products or services from merchants at special discounts through engaging in various types of casual games and other online activities offered, and experience an innovative entertainment and shopping model.

Sharon Singleton
Sharon Singleton
Sharon Singleton is a multi-media reporter with experience ranging from website management to reporting and editing for newspapers, news agencies and television. As Managing Editor she's been working with Asia Gaming Brief since 2013 and her specialties are: Business, current affairs, fluent in Italian, French, with working knowledge of Spanish.