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
(GPIC)
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. For additional information,
please visit http://www.gpigaming.com.
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.
Safe Harbor Statement
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 of 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. 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.
For Further Information Contact:
Gaming Partners International Corporation, Gregory S. Gronau, President, Chief Executive
Officer, Treasury and Secretary
PH: 702.598.2465
Entertainment Gaming Asia Inc., Traci
Mangini, Interim Chief Financial Officer
PH: 872.802.4227
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SOURCE Gaming Partners International Corporation