Century Entertainment to Expand Gaming Presence in APAC Countries
Hong Kong-listed Century Entertainment International has finalized a deal to form a joint venture that will bolster its footprint in the Asia Pacific (APAC) gaming sector. The agreement is part of the company's broader strategy to enhance its current gaming system platform and content capabilities, facilitating entry into additional markets across the region.
LISTEN TO THIS ARTICLE:The collaboration involves World Platinum Technologies Inc (WPT), a Philippines-based firm licensed by the country's gambling regulator, the Philippine Amusement and Gaming Corporation (Pagcor), to provide gaming systems and content. Initially announced in June, the partnership will now operate under a limited liability company incorporated in Hong Kong.
Related: Fitch Ratings Anticipates Strong APAC Gambling Results in 2025Century Entertainment will hold a 51% ownership stake in the new entity. The joint venture's board of directors will consist of five members, three of whom will be appointed by Century Entertainment. This structure ensures the company retains a controlling influence over the strategic and operational direction of the venture.
The company sees significant potential for expanding its platform and content offerings across various APAC jurisdictions. With an established presence in Southeast Asia's gaming market and WPT's technical proficiency, Century Entertainment aims to diversify and grow its presence in more countries within the region through this partnership.
Under the terms of the deal, Century Entertainment will allot 12,824,756 newly issued shares to WPT or its nominee. These shares will represent 10% of the total issued capital as of the agreement date. The issuance price of HKD0.62 per share (approximately USD0.079) reflects a 13.9% discount compared to the HKD0.72 closing price on June 25, which was the final trading day before the company's stock was temporarily suspended on the Hong Kong exchange.
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In return for the shares, Century Entertainment will gain non-exclusive rights to use, license, and distribute WPT's proprietary gaming platform and associated content. This arrangement is a key element of the joint venture's strategy to offer competitive gaming services throughout select APAC markets.
The agreement includes a revenue-based clause tied to performance. If the joint venture reaches certain income benchmarks within 15 months from the signing date, Century Entertainment will release another 12,824,756 shares to WPT. If both tranches are executed, WPT's total holdings will increase to 25,649,512 shares, accounting for roughly 16.7% of Century Entertainment's total share capital.
The joint venture marks a strategic step for Century Entertainment as it intensifies its efforts to establish a stronger position in Asia's rapidly evolving and highly competitive gaming industry.
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