South Africa casino group Sun International is in talks to acquire a “material interest” in limited payout machine operator GPI Slots Proprietary.
GPI is a subsidiary of Grand Parade Investments, one of the country’s largest LPM route operators. GPI Slots owns five LPM routes – Grandslots in the Western Cape, Kingdomslots in KwaZulu-Natal, Grand Gaming Slots and Hot Slots in Gauteng and Zimele Slots in Mpumalanga.
Graeme Stephens, chief executive of Sun International, described South Africa’s LPM market as “generally characterised by fragmentation and small participants which makes meaningful acquisitions difficult.
“An equity interest in GPI Slots would provide Sun International with an immediately meaningful presence in this industry, including management and infrastructure, rather than trying to grow from scratch. GPI Slots is a business that has already established itself in key markets but still has room for growth, including the potential in other markets in Africa and possibly Latin America.”
GPI chairman Hassen Adams said the two companies enjoy a “long-standing investment relationship” and suggested that the potential acquisition would further enhance the growth potential of GPI Slots.
“The deal would leverage Sun International’s extensive gaming and established operations, not only in the South African market, but also in the wider African markets.”
