Boca Raton, Florida – Atlantic International Entertainment Australia Pty, Ltd. (AIEA), an interactive and Internet gaming software systems provider and a wholly owned subsidiary of Atlantic International Entertainment, Ltd. (NASDAQ: AIEE), has made an offer to acquire all of Coms21 (ASX-CMZ).
AIEA will offer shareholders the equivalent of $.44 per share in the form of AIEE US shares. The offer is conditioned on AIEA acquiring at least 51% of the ordinary shares and options of Coms21, there being no material adverse change and other conditions, including the shareholders of Coms21, at a special general meeting held before the close of the offer, agreeing to extend the exercise date for Com21 at $.13 June 1998 options to September 30. AIEA will issue between $23 million (USD) to a maximum of $45 million of AIEE US stock, dependant upon the number of shares acquired and the percentage of the acquisition.
Coms21 is a developer of interactive gaming and wagering products, cashless gaming systems and smart card identification technology. The company has commercial contracts with New South Wales and the New
Zealand TAB (for its gaming and wagering products) and The Peoples Insurance Company of China, utilizing the patented smart card held reader.
"The successful acquisition of Coms21 will help the company reach our objective of providing the established gaming and wagering industry with a major global interactive technology and content provider," said AIE president and CEO Richard Iamunno. "The Coms21 product line has strong synergies with the current Atlantic line of products in both interactive and Internet gaming and wagering. The smart card technologies of Coms21 could gain additional distribution channels through our US and South
African Information Technologies division.
"Coms21 will give AIE a strong presence in the world's most sophisticated gaming market, along with a bridge to emerging Asian markets. We intend to work closely with Coms21 management to maximize
the distribution of all our products initially in the American, South African and Australian markets.
"With this proposed acquisition and the recent major investment and partnership with HCI in South Africa, the established gaming and wagering community will now have access to leading edge interactive and Internet products along with a strong global infrastructure to support the implementation of these new products."
HCI purchased one million shares for $4 million on April 30, 1998. The principle shareholders in HCI, a $650 million investment company, are the Mine Workers Investment Company and the South African Clothing & Textile Workers Union.
AIE develops and markets Internet and private network transaction based products, including global turn-key Internet Casino Extension (ICE) for licensed casinos; webSports, an Internet sports wagering system; realSports, an online sports information service; and Hotel Hotlinks, an in-room gaming and entertainment system. The company also offers a range of information technologies through its subsidiary, The Eminet Domain.