Empowerment group to unlock new revenue streams
Cape Town, 3 August, 2015:
JSE-listed investment and empowerment group, Grand Parade Investments (GPI), today announced that it has acquired a 4.95% stake in Australian gaming company, Atlas Gaming Holdings for R5.6 million (9 AUD 60 8670).
Atlas Gaming develops gambling machines for the Australian domestic market and the proposed transaction is aimed at opening the African market via GPI, a significant player in the South African gaming industry.
GPI will use its cash reserves to acquire the initial stake of Atlas and the shares will be a fresh issue of shares with the proceeds being used for expansion. Synot, a Czech-based Gaming company will subscribe for a similar shareholding.
Subsequent to the initial subscription of 4.95% in Atlas, GPI and Synot will each subscribe for a further 5.05% of the share capital of Atlas, in 12 months’ time.
“As an investment holding company, GPI’s focus is to invest in companies that will deliver good returns for our shareholders. For us the deal makes sense as two additional revenue streams will be created. The first being the ability to sell new gaming machines into the South African and African markets and the second is that GPI will obtain the contract to manufacture all the gambling machines for the African market in our country,” says GPI CEO, Alan Keet.
As shareholders in Atlas, GPI will attain the rights to manufacture and sell any gambling machines developed by Atlas Gaming in South Africa. The manufacturing contract will be awarded to Grand Tellumat Manufacturing (Pty) LTD, a leading local electronics manufacturer in which GPI owns a 51% share.
Says Tim Brcan of Atlas Gaming: “Our focus is to be one of the world’s leading producers and providers of gaming products. This deal will support our global growth strategy and unlock the African and European markets for Atlas.”
ABOUT GRAND PARADE INVESTMENTS
Grand Parade Investments Ltd. (GPI) was formed in 1997 to conduct business as an investment holding company with interests in the gaming and leisure industry. In June 2010 it acquired 100% ownership of its Limited Payout Slot Machine (LPM) operations and in so doing became an investor and operator. The company comprises a substantial shareholder base representing a broad spectrum of the population of the Western Cape and is an extremely proud, and truly Broad-based, Black Economic Empowerment enterprise. The company has been trading effectively on the JSE since 2008 and has consistently grown its portfolio to the benefit of all of its shareholders on an annual basis. In addition to its 25.1% shareholding in Sunwest (Pty) Ltd, which comprises both GrandWest Casino and The Table Bay Hotel, it also owns 25.1% of the Golden Valley Casino, and presently operates over 3300 LPMs at over 700 different locations across the Western Cape, Gauteng, KwaZulu-Natal and Mpumalanga. GPI owns MacBrothers Catering Equipment and 51% of Grand Tellumat Manufacturing and is also the proud owner of the Burger King master franchise for South Africa.
About Atlas Gaming
Based in Melbourne, Australia, Atlas Gaming has established itself as a leader in innovative and high performance proprietary gaming products designed for global markets. Atlas Gaming’s passion for product innovation, driven through technology and the talented and passionate people throughout its organization, delivers to the player a unique, highly entertaining and exciting gaming experience.
For further information contact:
Senior account director
Tel: +27 21 469 1568 or 082 826 0457