PETALING JAYA: Conglomerate Berjaya Corp Bhd (BCorp) together with Vietnam Computerized Lottery One Member Limited Liability Company (Vietlott) have been awarded an exclusive 18-year contract to invest in and operate a nationwide computerised lottery in Vietnam.
In an announcement, both BCorp and Berjaya Sports Toto Bhd (BToto) said the investment registration certificate was issued yesterday by the Hanoi Department of Planning and Investment.
The project will be carried out by the indirect subsidiary of BCorp, Berjaya Gia Thinh Investment Technology Joint Stock Company (Berjaya GTI). Berjaya GTI is a Vietnamese company 51%-owned by Berjaya Lottery Vietnam Ltd (BLV), a company incorporated in Labuan, which in turn is 80%-owned by BCorp and 20% owned by BToto.
The project will cost US$210.58mil (RM919.18mil) over 18 years. BCorp said the required investment for the project would be funded through internally-generated funds and/or borrowings.
The certificate which was awarded to the business cooperation contract (BCC) entered into between BCorp and Vietlott comprises investment for procurement and operation of the technical system, equipment, technology, software and computerised lottery in Vietnam.
The tenure of the BCC is 18 years commencing six months from the issuance date of the certificate.
BCorp went through a competitive bidding process against five other international lottery operators submitting proposals following a request for proposal by Vietlott.
“This award is of tremendous significance for Berjaya as it allows us to strengthen our existing business and socio-economic relationship in Vietnam, which dates back to 2005. We have made substantial investments in property development and the hotel and stockbroking industries in Vietnam over the years,” said BCorp chairman and chief executive officer Datuk Seri Robin Tan Yeong Ching.
As the project delivery partner, BCorp will provide state of the art and enhanced secure gaming technology, performance driven services, and an integrated business environment under the BCC.
BCorp expects the project to commence operations by July 2016.
The products to be launched under the project will include lotto games, digit games and fast draw games which will be distributed through various channels such as computerised terminals, telephones and mobile phones and the internet.
Berjaya GTI expects to launch the first game, a lotto jackpot game, bythe middle of this year, followed by a digit game.
BCorp said the launch will begin in Ho Chi Minh City and will progressively be rolled out nationwide within the next five years, with some 10,000 terminals.
Currently, state-owned enterprise Vietlott is the only company permitted to conduct business in computerised lottery in Vietnam.
“BCorp believes that the high barriers to entry, its 18 year exclusive contract and low competitive pressure in the lottery business will provide a stable business environment for the project to sustain and achieve growth in Vietnam,” it said.
The project will facilitate the group’s objective of expanding its gaming business overseas and will enable it to strengthen and widen its core business network as well as explore other businesses with growth potential in Vietnam.
BJCORP (3395) - BCorp gets lottery project in Vietnam
http://www.thestar.com.my/business/business-news/2016/01/21/bcorp-gets-lottery-project-in-vietnam/
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