GPI Buys a Stake in Australian Gaming Company

The Investment and empowerment group, Grand Parade Investments, cds_JSE, has bought a 4.95% stake in the Australian gaming company, Atlas Gaming Holdings, for a sum of R5.6m (Au$608 670). Atlas Gaming is a developer of gambling machines which they create for the Australian domestic market. This proposed transaction aim is to open the African market through GPI, who is a significant player within the South African gaming industry. Spokesperson for GPI said, in a statement, that it will be using their cash reserves for the acquisition of the initial stake of Atlas. They also have the option after 12 months, to subscribe for a further 5.05% of the share capital of Atlas. GPI’s CEO, Alan Keet, said that the deal would now unlock two additional streams of revenue for the investment holding company, the will be the ability to sell new gaming machines into African namely South Africa and other African markets and the second income stream is that GPI will also obtain the contract be the manufacturer of all the gambling machines for the African market in South Africa. As shareholders in Atlas, GPI will now be able to attain the rights to be able to manufacture and sell any of the gambling machines developed by Atlas Gaming in South Africa. This manufacturing contract will be given to Grand Tellumat Manufacturing, they are a leading local electronics manufacturer and GPI owns a 51% share. For Atlas Gaming this deal will support their global growth strategy at the same time unlock the African and European markets.