(Yicai Global) Oct. 13 -- Chinese news agency and online lottery operator People.cn Co. [SHA:603000] will transfer its stake in People Okooo Media Technology Co. for CNY99.31 million (USD15.08 million) or more, it said recently, adding that it will put its 36.37-percent stake in the firm on sale through Shanghai United Assets and Equity Exchange.

The transfer will help the firm control investment and operational risk, and lock in investment incomes to prepare funds for future developments and plans, the company said. It will also allow the firm to integrate resources from its lottery business and relevant industries to improve services and expand its industry presence.

Given trends in the internet lottery industry, the company plans to set up a unit to run its lottery business in accordance with plans for strategic development. It will increase staff to run the service and continue to apply to be able to run online lotteries after China rolls out policies on the practice.

People Okooo mainly engaged in online lotteries. In August 2013, People.cn took over its lottery and charity channels to offer news and other services. In 2014, its lottery service made up 18.35 percent of People.cn's total revenue, chipping in CNY286 million (USD43.42 million). Early the next year, China banned online lotteries, and People Okooo suspended the business on Feb. 28, 2015, though the unit was still contributing 2.99 percent of People.cn's total annual revenue.

"People Okooo's revenue has been dismal since China suspended online lotteries in 2015, so the company plans to offload its stake," a source at the shareholder told China Securities Journal. As of the end of July this year, People Okooo had total assets worth CNY275 million and had made losses for the year of CNY10.47 million.