Gaming Partners International Corp (GPI), a United States-listed supplier of casino currency and equipment, has announced that a Japanese firm, Angel Holdings GK, will buy all its stock for cash.
GPI will then merge with a United States subsidiary of the suitor firm. GPI told the U.S. Securities and Exchange Commission on Tuesday that it had agreed to merge with an entity called AGL Nevada Corp. Angel Holdings owns 100 percent of AGL Nevada.
Angel Holdings makes and supplies playing cards and card games for gaming and for the retail market. The company’s headquarters is in Kyoto, with branch offices in Macau, the U.S., Australia and the Philippines.
The deal will see Angel Holdings pay US$13.75 for each share in a cash-only transaction. There are 7.96 million outstanding shares in GPI, which implies that the deal is worth about US$109.5 million. The merged entity will retain the GPI brand identity.
GPI informed the SEC that the merger must be approved by the holders of the majority of its stock, as well as relevant gaming authorities. The deal also depends on GPI turning over gaming licences it holds, to Angel Holdings, GPI said.
Earlier this month, GPI reported net profit of US$1.5 million on revenue of US$22.9 million for the third quarter of this year, having made a net profit of US$2.2 million a year earlier on revenue of US$24.6 million. The company said the decline in revenue was due largely to lower sales in the Asia-Pacific region.
GPI’s third-quarter sales were about US$7.3 million, compared to almost US$11.6 million in the same period last year. “The decrease in revenues was primarily attributable to decreases in casino currency sales and gaming furniture sales partially offset by increases in all other product lines,” the Nasdaq-listed company said.
