In a filing with Bursa Malaysia, BCorp said the project, estimated to cost US$210.58mil (RM923.65mil) would be carried out by Berjaya Gia Thinh Investment Technology Joint Stock Company (Berjaya GTI).
Berjaya GTI is 51% owned by Berjaya Lottery Vietnam Ltd -- a company 80% owned by BCorp and 20% by BToto.
BCorp has signed a business cooperation agreement with Vietnam Computerized Lottery One Member Ltd Liability Company (Vietlott), a unit of Vietnam’s Ministry of Finance, which is currently the only enterprise permitted to conduct business in computerised lottery in Vietnam.
Following that, the Hanoi Department of Planning and Investment issued an investment registration certificate on Wednesday to it and Vietlott that certified they had been awarded the 18-year contract.
Berjaya GTI expects to launch its first game, a Lotto Jackpot game, by mid-2016, followed by a digit game thereafter.
BCorp said the project would initially be launched in Ho Chi Minh City and would be rolled out progressively to cover the whole of Vietnam within the next five years with some 10,000 terminals.
The project, according to the company, was the culmination of a competitive bidding process with five other international lottery operators submitting proposals pursuant to a request for proposal issued by Vietlott in June 2013.
The business cooperation contract 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 project will be implemented in the entire territory of Vietnam and is regulated by the regulatory agency tasked with the function of state supervision of lottery business in Vietnam,” said BCorp.
“Subject to the approval of the said regulatory agency, the products to be launched pursuant to the project shall include lotto games, digit games and fast draw games which will be distributed through various channels such as computerized terminals, telephones and mobile phones and the Internet.”
BCorp said the investment required for the project would be funded through internally-generated funds and/or borrowings over the project’s tenure.
On the project’s prospects, BCorp said the high barriers to entry, its 18-year exclusive contract and low competitive pressure in the lottery business would provide a stable business environment for the project to sustain and achieve growth in Vietnam.
“With the large population of about 90 million in Vietnam and gross domestic product that grew by 6.5% in 2015, the interest and demand for lottery gaming in Vietnam is expected to be significant with its vibrant economic environment,” it added.
BCorp shares fell 1 sen to close at 34 sen on Wednesday, with 4.986 million shares traded. BToto, meanwhile, gained 5 sen to RM3.00, with 727,000 shares changing hands.
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