Australian company Frontier Capital Group Ltd. has dropped an agreement to acquire the license needed to operate the Mongolian National Lottery.
In a filing with the Australian Securities Exchange, the firm announced that it has terminated the agreement it had with vendor, Monvest Group Pte. Ltd., after learning that Monvest would not be able to meet a number of conditions within the time period that was provided in the agreement.
“The agreement provides that the conditions precedent cannot be waived and the company and the vendor have agreed that the agreement be terminated,” Frontier Capital said in its filing.
The license would have given the Australia-listed firm the right to build the first casino in Mongolia.
Frontier was acquiring Monvest’s Mongolian subsidiaries BizNVIN and Modern Capital Vest LLC, which hold a special license to operate the National Lottery. The deal was initially expected to be completed sometime in March 2016, subject to renewal of the license to operate the lottery for another three years.
Frontier Capital had already advanced AU$1.5 million for purposes of “cash consideration,” which Monvest will now have to return.
“The acquisition of the Mongolian National Lottery license would have complemented the recent move by the company to gaming and hospitality. However, Frontier Capital has robust requirements that need to be met to minimize risks associated with acquisitions that the company considers. In this instance, those requirements have not been satisfied,” Frontier Capital director Ram Navaratnam said in a statement.