Chinese lottery provider 500.com has finalised its acquisition of a majority stake in Loto Interactive, purchasing 169,354,839 shares in the solutions business for HK105.0m (£98.0m/€11.5m/US$13.5m).
The acquisition was made via a share subscription, with 500.com purchasing a total of 169,354,839 shares at a price of HK$0.62 per share, as per a deal agreed in January.
500.com now holds a 54.3% ownership interest in Loto Interactive, increasing its existing holding from 33.7%.
In relation to the subscription, Loto Interactive has completed its acquisition of the remaining equity interests in indirectly held subsidiary Ganzi Changhe Hydropower Consumption Service Co.
Loto Interactive purchased the interests from two sellers for a consideration of approximately $104.4m, increasing its ownership of Ganzi Changhe to 100%.
Pursuant to the Hong Kong Code on Takeovers and Mergers, 500.com will now be required to make a cash offer to acquire all the remaining shares of Loto Interactive at $0.75 per share.
In addition, 500.com said it will now make a cash offer for the cancellation of all options of Loto Interactive, again in accordance with the Hong Kong Code on Takeovers and Mergers.