Intuitive Investments takes major leap with $365m investment in Hui10

Intuitive Investments Group plc (SFM: IIG), a noted player in the investment landscape, has officially declared its acquisition of Hui10 Inc. for a staggering $365 million. This monumental investment for the entire issued share capital of Hui10 marks a pivotal change in the Group’s direction, in sync with its investment objectives and policies. This decision comes following significant organizational milestones, including the appointment of Sir Nigel Rudd as Chairman and the Group’s shift to the Specialist Fund Segment of the London Stock Exchange’s Main Market earlier on August 8, 2023.

Technological Advancements in Chinese Lottery Market

Delving into the core of this acquisition, Hui10 is a burgeoning technology company with significant stakes in two operating businesses central to revolutionizing China’s lottery system. Its 33% share in Beijing Huishi Dehua Information Technology Co., Ltd facilitates market expansion through a unique digital payment platform, while a 60% ownership of Beijing Huishi Chunyuan Technical Development Co., Ltd enhances lottery shops’ access to a broader range of fast-moving consumer goods.

Innovative Lottery Solutions by Huishi Dehua

Huishi Dehua stands out with its patented technology, which digitalizes traditional lottery playing methods through smartphones and China UnionPay smart point-of-sale terminals. This payment platform is poised to broaden lottery access to China’s vast 1.1 billion adult population, significantly eclipsing the current reach of approximately 100 million users. This expansion strategy includes innovative elements like PELT (Points Exchange Lottery Tickets), scratch cards, and jackpot lottery services.

Lucky World’s Contribution to Retail Growth

Lucky World‘s creation aims to elevate more than 175,000 existing lottery-only shops. Operating under the ‘Lucky World’ brand, this omni-channel retail initiative integrates online and in-store FMCG sales with the regular lottery customer base. The added loyalty points system ‘Lucky Beans’ and the incorporation of payment services like UnionPay, WeChat Pay, and AliPay underlines Lucky World’s strategy to boost shop efficiency and drive customer footfall.

Growth and Value Prospects

Forecasting remarkable growth over the next five years, both Huishi Dehua and Lucky World are gearing up for an extensive market reach. Huishi Dehua targets expanding its lottery-enabled terminals across China, aiming to attract 400 million registered users and over 300 million active players. Similarly, Lucky World focuses on connecting the majority of lottery-only shops to its network, promising substantial value generation for shareholders.

Leadership and Shareholder Value

With Giles Willits joining the Board of IIG, bringing over three decades of senior finance experience, the Group is poised to leverage his expertise in overseeing Hui10’s progress. Sir Nigel Rudd, IIG’s non-Executive Chairman, expressed strong confidence in the investment, anticipating a substantial return for shareholders, highlighting the deal’s transformative potential for the Company.