Alibaba buys Hong Kong-listed AGTech

According to a statement, Alibaba and Ant will buy HK$1.67 billion ($215 million) in AGTech shares along with HK$712.6 million ($91.8 million) in convertible bonds to take a 59.4% stake in the enlarged company. AGTech is expected to double its authorized share capital to HK$40 million, which will be divided into 20 billion shares by the creation of an additional 10 billion shares.

The new capital will allow the company to pursue strategic acquisitions as Alibaba and Ant offer cloud computing and e-commerce services that will advance online lottery strategies. AGTech's Silvercreek subsidiary is touted as one of the most competitive mobile lottery service providers in China, capable of providing lottery organizations with comprehensive mobile betting solutions.

Ant was estimated to value more than $40 billion last year when China's National Council for Social Security Fund took a 5% stake in the company. It has also attracted PE investment by China Post Capital.

Alibaba's previous deals acquiring HK-listed companies have included the HK$1.33 billion ($171 million) joint purchase of a CITIC Group pharmaceutical data subsidiary with Yunfeng Capital as well as the HK$6.24 billion ($804 million) takeover of ChinaVision Media Group.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Technology
• Buyouts
• PIPEs
• Alibaba Group