Gauteng deal set to boost GPIs transition into a gaming operations company
The transaction, which is still subject to approval by the Gauteng Gambling 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 Funkey 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 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.
Leaf Capital acted as advisor to GPI, and Playmeter was advised by private equity players Dick Groeneweg and Ryan Wintle, of Construct Capital.
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