Thursday, September 3, 2015

RGB still keen on acquiring stake in Timor Holdings


RGB still keen on acquiring stake in Timor Holdings

KUALA LUMPUR: Penang-based electronic gaming and amusement machines manufacturer RGB International Bhd, which is confident of achieving a sales target of 1,500 machines for 2015, is still interested in acquiring a stake in Timor Holdings Lda in order to gain a strong foothold in Timor-Leste.
Currently, RGB’s presence in Timor-Leste is through a concession of machines with Timor Holdings but it is focusing on distributing gaming machines in the country.
During an analysts briefing yesterday, RGB executive director Mazlan Ismail said the company will review the acquisition plan “when the time is right”.
To recap, RGB’s planned acquisition of a 30% stake in Timor Holdings fell through in July as Timor Holdings was unable to obtain the relevant gaming licence from the authorities. The acquisition would have given RGB a foothold in Timor-Leste’s gaming industry.
“We’re confident that eventually it will come through, just give us some time,” he added.
RGB COO Steven Lim (pix), who is one of the directors of Timor Holdings, said RGB is on track to achieve its sales target of 1,500 machines this year despite a moderate sales performance of only 387 machines sold for the first half of the year.
He explained that there are about 300 machines that are on trial at the moment, which are expected to be converted into actual sales in the second half.
“Definitely we’ll register better sales in the second half than first half,” he said.
Last year, RGB sold a total of 1,452 machines, translating into RM143.16 million in revenue under the sales and marketing division.
For the six months ended June 30, 2015, it reported a 17.66% increase in net profit to RM10.89 million against RM9.25 million in the same period last year. Its earnings jumped threefold from RM5.97 million to RM18.16 million in 2014......

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