London-based Intuitive Investments Group (IIG) will fund China’s next chapter of modernising its lottery sector.
The Sir Nigel Rudd-chaired company will invest up to £30m in equity funding through investment manager Helikon Investments, split into three tranches, which will subsidise Chinese tech company Hui10 as it rolls out its Paperless Lottery Play terminals.
An initial sum of £5m in equity investment will be released when the first milestone is completed, which is receiving green light from the China Financial Certification Authority (CFCA) for the paperless pilot.
Additional £7.5m will follow once a formal agreement is in place with the Chinese Ministry of Finance, while the investment bulk of £17.5m will be given after the Ministry approves a nationwide rollout of Hui10’s project.
The agreement’s terms dictate that the subscription price for Tranches One and Two is the lower of either a 15% discount to the 30-day volume weighted average share price (VWAP) before the relevant milestone’s announcement, or a pre-money fully diluted valuation of £200m.
Tranche Three on the other hand is the lower of either a 15% discount to the 30-day VWAP before the announcement of the third milestone, or a pre-money fully diluted valuation of £400m. The agreement can be stopped by 31 August 2027 if milestones are not achieved.
According to IIG, the investment will boost Hui10’s financial capacity to become the leader and main technology partner of China’s ongoing efforts to transition to a digital lottery, leveraging its integration with China’s national payments platform, UnionPay.
The technology provider is projected to deploy UnionPay-powered Point of Sale (POS) terminals across more than 200,000 retail shops, and significantly expand the commercial potential of its proprietary omnichannel platform Lucky World.
Sir Nigel Rudd, Chairman of IIG, added: “The combination of major institutional investment from Helikon, and state-endorsed partnerships such as the China Financial Certification Authority confirms Hui10’s unique strategic position at the heart of China’s lottery transformation and sports development.
“This funding gives Hui10 the financial resources to deliver at national scale, with both commercial reach and regulatory credibility. It is a major milestone for IIG and a validation of our strategy to invest in platforms with long-term growth potential.”