RGB ratifies lease deal for 432 EGMs at Philippines casinos

Aug 09, 2024 Newsdesk Industry Talk, Latest News, Philippines, Rest of Asia  

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Malaysia-based slot machine supplier RGB International Bhd says a wholly-owned unit, RGB Ltd, has formalised a deal involving the leasing of 432 electronic gaming machines (EGMs) and their accessories at 18 casino venues in the Philippines. The announcement did not identify the casinos by name.

The parent said in a Thursday filing to Bursa Malaysia that the total investment by the parties involved the project was valued at just over US$15.5 million.

This was “after taking into consideration the condition and value of the electronic gaming machines” at the time of the deal that same day, “on a mutually agreed basis”.

The other parties in the deal are described as Pinnacles Inc, a Philippines company, and Timor Holding SA, incorporated in Timor-Leste. The announcement said that RGB’s board had ratified the latest amendment to an earlier agreement from 2019.

Overall, the updated deal is described as a related-party transaction under the rules of the parent’s listing.

The project cost incurred by RGB Ltd is said to be just under US$4.5 million. That represents a 50 percent share of the 432 machines, plus 50 percent share of the additional accessories, and after deducting accumulated depreciation charges up to August 3, 2021.

In April, RGB International had said the RGB Ltd unit, a Malaysian offshore company, was acquiring 86 gaming machines operated in the Philippines and controlled by Timor Holding, for a consideration of just over US$2.2 million from “internally generated funds”.

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