LOPNDON, UK: Intuitive Investments Group plc (IIG) has agreed, at a valuation of $365 million, to acquire in the entire issued share capital of Hui10 Inc. in exchange for the issue of 1.911 billion new ordinary shares in Intuitive Investments Group to vendor shareholders of Hui10, a statement said.
This investment is in accordance with the company’s investment objective and policy and follows the appointment of Sir Nigel Rudd as Chairman and the company’s move to the Specialist Fund Segment of the London Stock Exchange’s Main Market on 8 August 2023.
Hui10 is a technology company with interests in two operating businesses involved in transforming the lottery in China. It holds a 33% share in Beijing Huishi Dehua Information Technology Co., Ltd, which enables, through its digital based payment platform, the market expansion of the Chinese lottery.
It also owns 60% of Beijing Huishi Chunyuan Technical Development Co., Ltd (“Lucky World”) whose omni channel technology platform provides China’s lottery shops access to a wider fast-moving consumer goods (“FMCG”) product offering.
Huishi Dehua is aiming to increase the number of lottery enabled terminals to approximately three million shops and retail outlets across China, targeting to attract in excess of 400 million registered lottery users, with over 300 million active players, representing approximately 30% of the addressable market in China. As a payment platform the business receives a small share from the sale of each ticket, therefore this increase in participation represents a significant opportunity for value growth. This increased consumer participation would bring the Chinese lottery up to the lower end of that achieved in more established lottery markets including North America, Europe and the UK.
Lucky World is focused on connecting the majority of the existing dedicated lottery only shops to the Lucky World format, each sale generates a margin for the shop owner as well as Lucky World, therefore the rollout programme represents a significant opportunity for shareholder value generation.
As part of the investment Giles Willits will be joining the Board of IIG with specific oversight of Hui10. Giles has over 30 years’ experience working in senior finance positions, including over 20 years in executive board positions including Entertainment One Ltd. a FTSE250 company. Giles invested in Hui10 in 2018.
Sir Nigel Rudd, non-Executive Chairman, said: “I have had a career of realising shareholder value and believe the investment into Hui10 represents a transformational opportunity for the Company. I strongly believe Hui10 has the capability to return shareholders many times their investment at flotation and from the current share price.”
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