RGB International Bhd (RGBI) has amended an agreement involving one of its subsidiaries and the leasing of 432 electronic gaming machines in the Philippines.
In a recent dispatch RGBI announced that its Board of Directors has approved and ratified a Deed of Amendment and Restatement (DOA&R) involving its wholly-owned subsidiary, RGB Ltd. (RGBL).
The agreement, signed on August 3rd, 2021, with Pinnacles Inc. and Timor Holding S.A. (THSA), aims to formalize their business relationship under the Project Leasing Agreement (PLA), which involves the leasing of 432 electronic gaming machines across 18 casino venues in the Philippines.
RGBL and Pinnacles originally entered into an Investment Agreement in 2019, sharing investment costs and rental revenues from the gaming machines on a 50-50 basis.
Under the new DOA&R, THSA joins the project, assuming a 20 percent stake in both the investment and revenues, while RGBL maintains its 50 percent stake and Pinnacles reduces its participation to 30 percent.
The total investment for the project is valued at $15.54 million. RGB Ltd. is a Malaysian offshore company engaged in the trading and management of gaming and amusement machines.
Pinnacles Inc., based in the Philippines, and Timor Holding S.A., based in East Timor, are also involved in the gaming industry, with their respective activities centered on amusement and gaming machine operations.
Dato’ Seri Chuah Kim Seah, a former Director of THSA and current major shareholder via 1 Georgetown Ltd., and Datuk Lim Tow Boon, a Director and major shareholder of THSA, are also linked to RGBL.
The DOA&R outlines that the leasing of the electronic gaming machines will last for five years, beginning from the installation date at the respective casino venues.
RGBL, Pinnacles, and THSA will continue to share the investment cost, joint expenses, and rental revenues according to their agreed proportions: 50 percent for RGBL, 30 percent for Pinnacles, and 20 percent for THSA. In the event of disputes, the agreement stipulates that any unresolved issues will be settled in the courts of Makati City, Philippines.
RGBI has confirmed that there are no additional liabilities or guarantees to be assumed by the company as part of this project.
The Board of Directors believes that this partnership will bring strategic benefits to all parties involved, leveraging RGBL’s strong operational presence and retail network in the Philippines.
The Board also stated that the project is not expected to significantly impact RGBI’s financials, as it was funded entirely through internally generated funds. No shareholders’ approval is required for this project.
