Malaysian gaming machine distributor RGB International Berhad said Monday it has reached a deal with a company linked to two of its own directors to acquire 86 gaming machines currently installed in Philippine casinos and a 20% stake of the revenues they generate under an existing Product Leasing Agreement (PLA).
While RGB did not reveal where the units are installed, it confirmed it will pay a total consideration of US$2.2 million to Timor Holdings S.A. under which it will be entitled to 20% of the rental revenues from the net winnings of the machines for the duration of the PLA. Upon the PLA’s conclusion, RGB, via its wholly-owned subsidiary RGB Ltd, take full ownership of the machines.
Timor Holdings S.A. is a company incorporated in Timor-Leste with an issued share capital of US$10 million, according to a filing by RGB. The company counts RGB director Lim Tow Boon as a major shareholder by way of a direct 30% stake, while both Lim and former RGB director Dato’ Seri Chuah Kim Seah are also named as major shareholders in 1 Georgetown Ltd, which holds another 30% of Timor Holdings S.A.
Outlining its reasons for entering into the deal, RGB said, “The acquisition is a good investment opportunity for the RGB Group as the COVID-19 pandemic in the Philippines was fading away toward the end of year 2022.
“The acquisition enhanced the machine placement portfolio of the Group’s Technical, Support and Management (TSM) division as these machines are located at some of the top-performing gaming outlets in the Philippines. 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 TSM division.”
RGB is already a major distributor of gaming machines in the Philippines for brands including Aristocrat and Light & Wonder, and early last year inked a deal with KL Saberi – the slot machine brand of Korea’s Kangwon Land – to enhance its visibility across the Philippines market.
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