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© mariusz szachowski dreamstime.com Electronics Production | October 31, 2014

GPI acquiring 51% of Tellumat JV

Some eyebrows in Cape Town were raised when empowerment company Grand Parade Investments (GPI) opted to relinquish the bulk of its gaming investments. But perhaps it is GPI’s concerted push into manufacturing in Cape Town that is the real eye opener.
Earlier this year GPI sold its stakes in the GrandWest casino in Goodwood and Golden Valley casino in Worcester as well as selling control of its limited payout machine (LPM) operations to gaming giant Sun International.

But the company has not entirely given up wagering some of its fortune on gaming. The difference, however, is a new alignment with manufacturing.

Besides retaining a minority stake in the Sun International controlled LPM business GPI will now also play a role in supplying slot machines to the gaming sector. In August GPI reiterated its LPM ‘hardware’ play by entering into a manufacturing joint venture with Retreat-based electronics contract manufacturer Tellumat.

The deal entails GPI acquiring 51% of a joint venture company, Grand Tellumat Manufacturing, with Tellumat owning the balance of 49%. The transaction has been described as a merger of the engineering skills and manufacturing capabilities of Tellumat with the investment know-how of GPI.

“There is no need for South Africa to fully import or outsource the manufacture of high tech electronic products to companies overseas. We have all the necessary skills to do this competitively, which not only provides convenience to our local customers, but will create much needed jobs and keep engineering skills in South Africa,” said Tellumat CEO Andrew Connold.

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