Gaming Partners International Corp. (NASDAQ: GPIC)
Casino currency and equipment supplier Gaming Partners International Corp. is going to be acquired by Japanese-based Angel Holdings GK in a cash-only deal valued at $110 million.
Shares of Gaming Partners gained $5.49, or 71.39% to change hands at $13.18 before the opening bell on Wednesday.
According to the terms of the agreement, Gaming Partners shareholders will receive $13.75 in cash in exchange for their shares. Angel will own 100% of Gaming Partners once the transaction is closed next year. However, Gaming Partners has the right to negotiate with other potential buyers until Feb. 2.
Angel said in a press release, “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 favorable 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 deal is worth about $109.5 million since there are 7.96 million outstanding shares in Gaming Partners. Gaming Partners will merge with AGL Nevada Corp, a subsidiary of Angel Holdings GK based in the U.S. but it will still retain its brand identity. The transaction is still subject to the approval of Gaming Partners shareholders, including the receipt of certain approvals from gaming authorities and other customary closing conditions.
Gaming Partners posted a third-quarter net profit of $1.5 million on revenue of $22.9 million earlier this month, compared with net profit of $2.2 million on revenue of $24.6 million in the same period last year. Lower sales in the Asia-Pacific region were largely to blame for the decrease in revenue.
Angel Holdings makes and distributes card games and playing cards for the gaming industry. It is headquartered in Kyoto, Japan and has branches in the U.S., Australia, Macau, and Australia. It holds a significant market share in Macau and is one of the leading playing cards suppliers in the world.
Gaming Partners International Corp. Profile
Gaming Partners International Corp. engages in the manufacture and supply of casino table game equipment to licensed casinos worldwide. The company operates through the following brands: Paulson, Bourgogne et Grasset, Gemaco, Dolphin, and Bud Jones.
It also provides casino currency such as chips, plaques and jetons; playing cards; table layouts; gaming furniture and table accessories; dice; and roulette wheels. The company was founded in 1963 and is headquartered in Las Vegas, NV. – CNN Money