Malaysia slot machine supplier RGB International Bhd said by way of a Thursday filing that it has ratified the entering into of a Deed of Amendment and Restatement by its wholly-owned subsidiary RGB Ltd in regard to a leasing deal involving 432 electronic gaming machines located in 18 unspecified casinos in the Philippines.
The Deed essentially formalizes the business relationship from a 2019 Project Leasing Agreement between RGB Ltd and Philippines-based Pinnacles Inc under which the two companies had agreed to share equally the investment costs and joint expenses, as well as rental revenues, from the operation of the 432 machines in question. The total investment cost of this project is said to have reached US$15.5 million.
Under the new Deed of Amendment and Restatement, RGB Ltd will continue to take a 50% share in costs and revenues, with Pinnacles to reduce its stake to 30%. Timor Holding S.A, which counts RGB directors Chuah Kim Seah and Steven Lim Tow Boon among its own directors, had also expressed interest in participating and will take the other 20% share in expenses and rental revenue.
According to RGB, “The project is paving way for the parties to be strategic partners in the Project Leasing Agreement. With the parties’ renowned brand image and high product quality together with RGB Ltd’s strong operation and retail network in the Philippines, the company believes that positive synergies will be derived from the project.
“Moreover, RGB Ltd’s participation in the Project Leasing Agreement remains the same. There was no gain or loss on RGB Ltd’s books. The only purpose of RGB Ltd entering into the Deed of Amendment and Restatement with Pinnacles and Timor Holding S.A. was to recognise the disposal of 20% of Pinnacles’ participation in the Project Leasing Agreement to Timor Holding S.A. and to formalise the business relationship of the parties in the Project Leasing Agreement.”
RGB International Bhd previously announced in April that it had reached a deal with Timor Holding S.A. to acquire 86 gaming machines currently installed in Philippine casinos and a 20% stake of the revenues they generate.