ARISTOCRAT TO BUY VGT FOR $1.3BN ASIA & OCEANIA GAMING NEWS G3Newswire
Aristocrat has confirmed the acquisition of US-based Class II gaming developer, Video Gaming Technologies for US$1.3bn
Australia - Suppliers
Aristocrat is set to buy US group Video Gaming Technologies in a $US1.3bn deal that will give Aristocrat a greater presence in the key tribal casino market in the US.
“The strategic and financial benefits are compelling for Aristocrat shareholders,” chief executive Jamie Odell (pictured) said in a statement to the Australian Stock Exchange. “VGT has a comple- mentary product offering and provides a unique opportunity to accelerate our growth in the US recurring revenue segment, which has for some time been an important strategic objective.”
The cash deal, which will also see Aristocrat refi- nance its debt facilities into a new $1.4bn debt package, is expected to be completed by the end of the first half of 2015. VGT is one of America's largest privately owned gaming machine suppliers, and concentrates on Class II gaming machines. The deal will take Aristocrat’s gaming operations from an installed base from approximately 8,200 units to 28,400 units and increase the percentage of Aristocrat’s earning defined as recurring from 15 per cent to 35 per cent. It also increases revenue from the North American market from 48 per cent to 60 per cent.
WWW.G3NEWSWIRE.COM
“We have consistently called out growing in the North American market as our highest strategic priority,” Mr Odell said during a call to investors.
In addition to the new debt arrangements, the company plans to conduct a $375m placement to institutional investors and a $30m share offer to members of the Ainsworth family, who are amongst the group’s largest shareholders. Retail shareholders will be also be able to buy up to $15,000 in new shares.
The deal will see VGT founder Jon Yarbrough walk away from a business that he started in 1991. Mr Yarbrough will stay on as an adviser after the deal and Mr Odell says Aristocrat has put in place “mechanics” to retain key VGT staff members.
Tahiti The French Polynesian government has approved a proposed hotel and resort complex on Tahiti, which will cost nearly US$3bn to realise. A jury has picked the project by a Hawaiian company, Group 70 International, to develop the Tahiti Mahana Beach Resorts and Spa on 52 hectares on the island’s west side. The two other proposals were from a French and a Chinese company.
Aristocrat acquires Paltronics to boost Oasis systems division
AUSTRALIA In a busy month for Aristocrat the company has further announced the acquisition of all material assets of Paltronics Inc., including IP relating to product. Paltronics is a supplier of complimentary gaming prod- ucts and systems based in Crystal Lake, Illinois, US.
Paltronics provides a range of applications for in-game media windows and bonusing applica- tions for EGMs, video poker machines and table games. The company is a market leader in progressive jackpots, with Paltronics jackpot controllers already deployed in Aristocrat’s highly successful linked pro- gressive products including
Hyperlink and Xtreme Mystery. In North America, Paltronics provides a complementary product offering to Aristocrat’s OASIS 360 systems portfolio, with digital media, and venue- wide progressive bonusing.
In Australia, New Zealand and
throughout Asia, Aristocrat will maintain the relationship with the independently-owned Paltronics Australasia, which has acted as the exclusive dis- tributor for Paltronics products in the regions.
This acquisition will further strengthen Aristocrat’s OASIS 360 systems offer in North America, while delivering incremental product synergies,
access to new technologies and product features, cost savings and integration benefits. This deal will also secure Aristocrat’s access to key technology underpinning the company’s exciting new generation of linked progressive products, while protecting existing multi- site progressive technology infrastructure and opening up further innovation opportuni- ties in the jackpot segment.
Aristocrat CEO Jamie Odell,
said, “This is a compelling acquisition that will deliver sig- nificant value across key strate- gic segments, particularly our leading US casino systems busi- ness and in linked progressive and jackpot markets. This acquisition is another demon- stration of Aristocrat’s readiness to make strategic and measured investments behind our core value drivers, consistent with our growth plans.”
SOUTH KOREA – DELAYS HIT GENTING’S JEJU PROJECT Genting Singapore’s plans to build a US$2.2bn casino resort in South Korea’s Jeju Island are facing delays prior to a ground-breaking event on June 24.
Despite having already sent out invitations for guests and the media to attend, Genting has decided to reschedule the ground-breaking ceremony.
Genting Singapore stated that the postponement was to give it the opportunity to speak to the newly-elected governor of Jeju about the casino’s vision and its economic contribution to Jeju Island.
The company now expects construction of Resorts World Jeju to begin in the third quarter of 2014 and that it will open in stages from 2017.
In February, Genting Singapore said partnering with Chinese property developer Landing International Development, marking it first move into South Korea. The resort would fea- ture roller coasters, hotels with castle-like facades and repli- cas of monuments like the Taj Mahal and the Pyramids, the iconic destination will be Jeju Island’s largest tourism resort to date. Landing International and Genting Singapore will jointly own, manage and operate the integrated resort when it opens progressively from 2017.
AUSTRALIA- ECHO LOOKS TO UP STAR’S VIP ANTE Echo Entertainment Group has applied for a $13.7m VIP extension at its Star Casino with the City of Sydney Council.
Echo wants planning permission to build five new VIP gam- ing rooms on the 17th floor of the Astral hotel The Star already boasts Sovereign Room and Inner Sanctum that cater for VIP guests but it is looking to increase its VIP offering prior to Crown Resorts opening its VIP-only $1.3bn Barangaroo casino in November 2019.
A spokesman for Echo Entertainment Group revealed that details of The Star’s proposed development would be on dis- play throughout July.
He said: ‘‘Echo is undertaking the investment as part of our ongoing reinvestment in The Star. As outlined in Echo’s recent trading update the underlying business has good momentum and we want to continue to build on this attract- ing both local and International visitors.’’
3 5
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68