GAMBLING: GPI Readies For Gaming Operations
Recent Western Cape Business News
Grand Parade Investments (GPI) has taken a significant step towards reaching its goal of expanding its Limited Payout Machine (LPM) network from 2,000 to 5,000 LPM’s, with the announcement that its subsidiary Thuo Gaming Gauteng (Thuo GG) has concluded a binding sale of business agreement with LPM operator Playmeter.
The transaction, which is still subject to approval by the Gauteng Gaming Board (GGB), will see Thuo GG acquire the assets and contracts of Playmeter’s route operator business in Gauteng, including its Route Operator License that will provide Thuo GG with the ability to operate up to 1000 LPMs in the Gauteng region.
According to Hassen Adams, Chairman of GPI, this well calculated and timely transaction is in line with GPI’s stated strategy of transforming from an investment holding company to a fully-fledged gaming operations company with investments.
“The Playmeter acquisition represents an important step in the expansion of GPI’s footprint in the LPM industry, which we believe remains a relatively untapped market within South Africa and more notably Gauteng. Getting this strong foothold in the Gauteng market will ultimately help GPI achieve the necessary level of critical mass that will distinguish it as one of the country’s premier LPM operators.”
CEO Adrian Funky added: “This deal has again demonstrated GPI’s ability to pursue, negotiate and implement the opportunities necessary to achieve our strategic goals. The LPM market continues to show significant economic resilience, and reduces GPIs dependence on the success of traditional land-based casinos.”
At the time of the transaction Playmeter’s route operator business consisted of 62 LPMs across sixteen sites in Gauteng, and it has approval from the GGB to roll-out an additional ten machines at two new sites. Various other applications are also pending approval by the GGB.
Thuo GG has indicated the consideration will be primarily be settled through the issue of GPI ordinary shares, and the remainder in cash. Full details of the purchase consideration and the method of payment thereof will be disclosed once regulatory approvals for the acquisition have been obtained.
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