GRAND PARADE INVESTMENTS IS
ALIVE AND KICKING IN GAMING South Africa’s GPI swaps operations for manufacturing with an expansion of plans to build slot machines with electronics contract manufacturer, Tellumat
Having been a long-term subscriber to G3 magazine, Cape Town-based Grand Parade Investments cancelled their subscription mid- summer 2014, just as it announced the wholesale sell-off of its casino investments and the majority of its LPM operations in South Africa. It appeared as though GPI was taking a non-gaming tack and concentrating on its profitable Burger King franchise instead. However, it looks as if the claims of GPI’s demise in gaming have been somewhat premature.
Despite selling its stakes in the GrandWest Casino in Goodwood and Golden Valley Casino in Worcester as well as selling control of its LPM operations to Sun International, GPI has not entirely given up on gaming. The difference, however, is a new alignment with manufacturing.
Besides retaining a significant minority stake in the Sun International controlled LPM business, GPI will now also play a major role in supplying slot machines to the gaming sector. In August GPI reiterated its LPM ‘hardware’ play by entering into
Insight SOUTH AFRICA
that government’s localisation initiative will create more local manufacturing opportunities and act as a catalyst for job creation. In essence, Grand Tellumat Manufacturing looks well positioned as a localisation partner for foreign and local vendors bidding for government procurement and infra-structure projects.
a manufacturing joint venture with Retreat-based electronics contract manufacturer Tellumat.
The deal entails GPI acquiring 51 per cent of a joint venture company, Grand Tellumat Manufacturing, with Tellumat owning the balance of 49 per cent. The transaction has been described as a merger of the engineering skills and manufacturing capabilities of Tellumat with the investment know-how of GPI.
The newly created company wants to position itself as the manufacturer of choice for electronic and related technology products designated as requiring minimum levels of local content to be eligible for procurement by government departments and local infrastructure projects. Both GPI and Tellumat are clearly anticipating
At the end of 2012, GPI entered into a deal with German slot machine manufacturer Merkur Gaming to manufacture gaming machines in South Africa. This saw an arrangement where they could manufacture, assemble and distribute slot machines, sports betting and lottery terminals through a joint venture with Tellumat as the contract manufacturer.
Tellumat CEO Andrew Connold has commented that the South African government’s infrastructure build projects and localisation policies are a significant opportunity for Grand Tellumat Manufacturing. “There is no need for South Africa to fully import or outsource the manufacture of high tech electronic products to companies overseas. We have all the necessary skills to do this competitively, which not only provides convenience to our local customers, but will create much needed jobs and keep engineering skills in South Africa.”
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