Loss making Atlas bets on Nigerian gambling

What you need to know:

“Atlas’ total investment into EPL at this stage is Sh30million ($300,000, in consideration for which it has acquired a 10 per cent equity stake in EPL.”

Loss making Nairobi Securities Exchange listed firm Atlas Africa Industries has made a Sh30m bet on a Nigearia-based gaming company, BonanzaWin.

The equity buyout will see Atlas Africa hold a 10 per cent stake of the Nigerian firm.

BonanzaWin has an online gaming platform, which powers a wide range of games including sports betting, live casino and slot games focused on the Nigerian market.

Atlas in a statement to the bourse said the investment is in line with the company’s strategy to identify prospective growth opportunities across Africa, particularly within the growing consumer market.

“The investment has been effected through a share subscription and capital contribution into Equatorial Partners Limited (‘EPL’), a Maltese holding company which in turn holds a 60 per cent stake in Saerimner Ltd (‘Saerimner’), a Nigerian registered company operating under the trading name “BonanzaWin”,” it said in a regulatory filing.

“Atlas’ total investment into EPL at this stage is Sh30million ($300,000, in consideration for which it has acquired a 10 per cent equity stake in EPL.”

Large consumer market

The UK logistics company, announced the closure of its Kenyan subsidiaries last December following a downturn in the oil and gas exploration sector.

Carl Esprey, CEO of Atlas said, “BonanzaWin provides us with exposure to Nigeria’s large consumer market, specifically the fast-growing gaming and entertainment market.”

Atlas Africa Industries earlier this year ran into atax dispute with the Ethiopian government that saw it lose Sh241 million ($2.4 million) from its subsidiary TEAP Glass Plc.

Atlas Africa Industries last April announced a net loss of Sh3.42 billion loss for the 18 months ended December 2015, which it linked largely to costs of discontinued operations in Kenya.