HONG KONG, April 22, 2016 /PRNewswire/ -- Entertainment
Gaming Asia Inc. (NASDAQ: EGT) and Gaming Partners
International Corporation (NASDAQ: GPIC), today announced that
EGT's wholly-owned Hong Kong
subsidiary, Dolphin Products Limited ("Dolphin"), has entered into
a binding letter of intent ("LOI") to sell its assets to GPIC.
Dolphin is a leading manufacturer and distributor of RFID and
traditional gaming chips and plaques under the Dolphin brand to
major casinos in Asia and
Australia. GPIC is a leading manufacturer and supplier of
casino table game equipment, including gaming chips and
plaques, to licensed casinos worldwide under the brand names
Paulson, Bourgogne et Grasset, Gemaco and Bud Jones.
Under the terms of the LOI, GPIC will acquire the assets of
Dolphin including fixed assets, raw materials and inventory and
intellectual property for an estimated cash purchase price of
approximately $5.9 million, subject
to physical inventory counts at closing. The purchase price
will be paid out in installments over a 24-month period after
closing. In addition, GPIC will make earn out payments to EGT over
the next five years based on a varying percentage of net revenues
on certain select sales to specific Asian-based casinos. The asset
sale represents Dolphin's and EGT's exit from the table game
equipment business and, as part of the transaction, Dolphin and EGT
will each agree not to engage in the manufacture of table game
equipment in competition with GPIC.
The companies anticipate negotiating a definitive asset purchase
agreement to effect the transaction consistent with the terms of
the LOI and closing the transaction in May
2016. The closing of the transaction will be subject to
GPIC's satisfactory due diligence review of Dolphin and customary
closing conditions to be set forth in the definitive asset purchase
agreement. Accordingly, there is no guarantee the transaction will
be consummated.
About Gaming Partners International Corporation
Gaming Partners International Corporate (NASDAQ: GPIC) manufactures
and supplies casino table game equipment to licensed casinos
worldwide. Under the brand names of Paulson®, Bourgogne et
Grasset®, Gemaco® and Bud Jones®, GPIC provides casino currency
such as chips, plaques and jetons; playing cards; gaming furniture
and table accessories; table layouts; dice; and roulette wheels.
GPIC pioneered the use of security features such as radio frequency
identification device (RFID) technology in casino currency and
provides RFID solutions including RFID readers, software and
displays. Headquartered in North Las
Vegas, Nevada, GPIC also has manufacturing facilities,
warehouses and/or sales offices in Beaune, France; San Luis Rio
Colorado, Mexico; Blue Springs,
Missouri; Atlantic City, New
Jersey; Gulfport,
Mississippi; and Macau S.A.R., China.
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (NASDAQ: EGT), an indirect,
majority-owned subsidiary of Melco International Development
Limited, is a gaming company in Pan-Asia engaged in the
leasing of electronic gaming machines to the gaming industry in
Cambodia and the Philippines and the development and
operation of gaming venues in Asia
under its "Dreamworld" brand. The Company also
manufactures and sells RFID and traditional gaming chips and
plaques to major casinos under its "Dolphin" brand.
Forward Looking Statements
This press release contains forward-looking statements concerning
Entertainment Gaming Asia and Gaming Partners International
Corporation within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Those forward-looking statements include
statements regarding expectations for the total consideration value
of the transaction, the ability to complete the acquisition and in
the timeframe contemplated and the expected benefits to the
companies from completing the acquisition. Such statements are
subject to certain risks and uncertainties, and actual
circumstances, events or results may differ materially from those
projected in such forward-looking statements. Factors that could
cause or contribute to differences include, but are not limited to,
the risk that the acquisition cannot be completed or completed
under the terms specified in the LOI and those other risks set
forth in the companies' respective annual reports on Form 10-K for
the year ended December 31, 2015
filed with the SEC and subsequently filed reports. The companies
caution readers not to place undue reliance on any forward-looking
statements and they do not undertake, and specifically
disclaim any obligation to update or revise such statements to
reflect new circumstances or unanticipated events as they
occur.
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SOURCE Entertainment Gaming Asia Inc.