Merger talks are underway between casino table games equipment manufacturers and suppliers Gaming Partners International Corporation and Angel Holdings Godo Kaisha.
The proposition would see Las Vegas headquartered GPIC, who also has facilities within Macau, France and Mexico, as well as Missouri, Mississippi and New Jersey in the US, be purchased by its Japanese counterpart Angel for an approximate price of $110m.
Attempting to strengthen its presence, Angel would significantly enhance its global footprint, which sees the Kyoto-based firm encompass numerous facilities across Japan and Singapore, in addition to occupying offices in the United States, Macau, Australia and the Philippines.
Under the terms of the merger agreement, which “was unanimously adopted by a special transaction committee of independent directors of the board of directors of GPIC,” shareholders are to be paid $13.75 in cash for each share of GPIC common stock.
Furthermore GPIC stockholders holding approximately 51% of the outstanding shares have signed a voting agreement, approving the potential transaction.
In a media release, Angel disclosed further details of the pending transaction: “Under the terms of the merger agreement, stockholders of GPIC will receive $13.75 in cash in exchange for their shares. Upon closing of the transaction, Angel will own 100% of GPIC.
“The merger agreement provides for a go-shop provision under which, subject to certain limitations and conditions contained in the merger agreement, GPIC and its board of directors may actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals to the proposed merger transaction until February 2, 2019.
“There can be no assurance that any person will make a proposal more favourable to the stockholders of GPIC, than what Angel has agreed to under the merger agreement.
“GPIC does not intend to disclose developments about this process, unless and until its board of directors has made a decision with respect to any potential superior proposal.”
The transaction, which is expected to close in 2019, is subject to the approval of GPIC stockholders and the receipt of certain approvals from gaming authorities, in addition to other customary closing conditions.