A wholly-owned unit of Malaysia-based slot machine supplier RGB International Ltd is acquiring 86 gaming machines operated in the Philippines and controlled by a company in Timor Leste, for a consideration of just over US$2.2 million from “internally generated funds”.
In exchange, the unit, RGB Ltd, a Malaysian offshore company, will be entitled to a 20-percent share of the winnings from the 86 machines, net of relevant taxes and joint expenses, said the company in a filing to Bursa Malaysia.
RGB International said the group expects to make its money back within two years.
The agreement, announced on Friday, is with Timor Holdings SA, based in Dili, the capital of Timor Leste.
Chuah Kim Seah, a director and major shareholder of RGB International, was until January 1 a director of Timor Holdings. He remains an indirect shareholder in the company, according to RGB’s latest filing
Lim Tow Boon, additionally known as Steven Lim, is also a director and major shareholder of Timor Holdings with 30 percent of the share capital, as well as being a director of RGB International, noted the filing.
RGB International commented regarding the deal for the 86 gaming machines: “The acquisition is a good investment opportunity for RGB International group.”
The parent added: “The acquisition enhanced the machine placement portfolio of the group’s technical, support and management division as these machines are located at some of the top-performing gaming outlets in the Philippines.”
The filing added: “The group expects to recover this investment within the next 24 months and the acquisition will contribute positively to the earnings of the group’s technical, support and management division.”
