Astro to set up lottery JV firm in China

Astro Corp (泰偉電子), a manufacturer of gaming printed circuit boards (PCBs) and reel slot machines, announced on Monday that it would invest in a US$3 million joint venture (JV) with a Chinese lottery consulting firm to tap into the Chinese market.

In a filing to the Taiwan Stock Exchange, Astro said it had signed an agreement with Beijing-based Zizhou International Co (紫洲國際文化), a lottery management and consulting firm, to set up Dragon Lottery Technology Ltd (龍彩科技) in Beijing through its wholly owned Hong Kong subsidiary.

Astro will take a 30 percent stake in the joint venture, while Zizhou will hold the remaining 70 percent, it said.

Astro will provide strategic technology and sales support to facilitate the release of sports and welfare lotteries in various Chinese provinces, aiming to make Dragon Lottery Technology the largest lottery system provider in the market, the statement said.

Dragon Lottery Technology will mainly use a point-of-sale lottery system and video lottery terminals, or gaming machines that allow gamblers to bet on the outcome of a video game, it said.

Astro did not provide a timetable for the launch of the new firm as the project still has to be approved by the Investment Commission.

Shares of Astro declined by NT$22, or 6.67 percent, to close at NT$308 on the Taiwan Stock Exchange yesterday.