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Heilongjiang Sports Bureau in Deal With DJI Holdings
Monday September 14,2015 : D.J.I. HOLDINGS IN A NEW CHINESE LOTTERY DEAL
AIM-listed company follows up its Arsenal FC signing with a Heilongjiang Sports Bureau deal.
UK-listed Chinese lottery sports and welfare lottery promoter DJI Holdings plc has announced a cooperation agreement with Heilongjiang Sports Bureau in the Heilongjiang province of China to establish a joint venture and a placing of new ordinary shares to raise GBP 5.6 million.
Earlier this month the company signed up Arsenal FC to become the famous UK football club's Official Lottery Partner in China
In a stock exchange statement DJI said the agreement with HSB intended to establish a joint venture company, with 40 percent owned by DJI and 60 percent by HSB, and seek a listing on the New York stock exchange.
DJI will provide funding of US$3.1 million in cash to the JV and HSB will provide a further RMB 30 million. The goal of the JV is to provide funding and support services to HSB’s commercial activities, especially football and winter sports.
The mission will include a business-to-business online booking system for sports, based on DJI technology, which the company believes will prosper from a substantial market.
The joint venture has already negotiated terms with three of China’s largest online portals to sell and promote the B2B system from November 1, giving it direct access to customer bases. A full e-commerce platform for the HSB is expected to achieve roll-out in 2016.
The JV will also enjoy exclusive lottery contracts with HSB for distribution channels that include the official web site, mobile platform, and lottery stores.
Heilongjiang province in the north east of China is the country’s sixth largest province with a population of some 40 million people; the Heilongjiang Sports Bureau is responsible for all sports lottery activities in the province, and in 2014 generated sales of RMB 7.03 billion, an increase of more than 60 percent on the preceding year.
The Bureau additionally owns or operates a number of sporting venues and facilities across the province, including Yabuli, China’s largest ski resort.
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