Atlas African Industries Limited is set to award its newly-hired executive Willem Jacobus Bodenstein shares worth $3 million (Sh311 million) as his compensation for driving the company’s growth in the gaming business. The 2.3 billion Atlas shares to be allotted to Mr Bodenstein could see him become a significant –if not controlling shareholder — in the company over the next few months.
Mr Bodenstein, a former chief executive of South Africa’s Vukani Gaming Group, joined Atlas in December as the chief operating officer with a mandate to develop a gaming business in several African markets. He is to develop the business in two phases and will receive the shares if he hits the set targets, with Atlas betting its future on his ability to implement the strategy.
Mr Bodenstein is a slot machine and sports betting specialist with extensive experience of operating in Southern Africa. “In consideration for achieving the agreed targets, Mr Bodenstein will receive new shares in the capital of Atlas,” the company said in a circular to shareholders.
The 2.3 billion Atlas shares earmarked for Mr Bodenstein is more than 1.5 times the current 1.4 billion issued shares. The company, which remains suspended from the London Stock Exchange and Nairobi Securities Exchange, will Friday vote to issue 1.2 billion new shares to raise $1.5 million (Sh155 million) from new investors.
The vote will be held at a general meeting in Guernsey, with the new shares diluting existing shareholders 44.5 per cent if the proposal is approved.
Cash raised from the share sale will be used to finance Mr Bodenstein’s expansion of the gaming business which Atlas first entered through the purchase of a 13.5 per cent stake in Nigeria’s BonanzaWin for Sh50 million.
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BonanzaWin offers a range of “bricks-and-mortar” and online play gaming experiences, including sports betting, live casino, slot games, virtual games and football pools lottery. In the first phase of the expansion, Mr Bodenstein will be tasked with acquiring physical gaming licences in Zambia, Lesotho, Swaziland and Uganda.
For this, he will receive $1 million (Sh103 million) worth of Atlas shares in the form of 789.2 million units at a price of 0.1 pence each. The shares will be allotted at an exchange rate of one British pound for 1.26 dollars.
Similar stock compensation terms will apply for the next two phases including the second stage when he will seek to acquire physical gaming licences in Ghana or another jurisdiction to be agreed upon with Atlas.
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