Gamingking has announced plans to buy Orb Holdings – the second-largest operator of amusement machines in the UK licensed industry – in a reverse takeover It has conditionally agreed to acquire Orb Holdings for the issue of 32.95 million consideration shares, which represents 85% of the enlarged share capital. M&C Report understands that the deal could see an introduction of Gaminking lottery machines in pubs that Orb Holding provides amusements for. Gamingking chairman Douglas Yate said: “We are delighted to announce the proposed acquisition of Orb Holdings Limited which is a unique opportunity for Gamingking. The two businesses are highly complimentary both operationally and in terms of company culture. “We expect the combination of the two will provide the enlarged group with a range of cross-selling opportunities and economy of scale benefits, representing value for Gamingking across a number of fronts. “The directors believe that there is good potential to expand the enlarged group both organically and through acquisition to continue to deliver future growth for shareholders.” The reverse takeover deal accompanied news that revenue for Gamingking fell to £5.03 versus £5.13 last year. The company reported a pre-tax loss of £342,000 compared with a profit of £11,000 this time last year. A third of the loss was incurred during the first half of the year, and the second-half loss can be attributed to a combination of one-off restructuring and project startup costs, together with the effects of the smoking ban, the lottery machine provider said. It also said a resolution will be proposed at the general meeting to change the company's name to 'Sceptre Leisure Plc', following the takeover. The suspension of trading in the company's shares on AIM was lifted with effect from Tuesday, the group added. To facilitate the acquisition, the company also proposed a capital reorganisation, which will involve a sub-division of the existing ordinary shares followed by a consolidation and subsequent increase of the existing share capital. For every 50 ordinary shares, the shareholder will hold one new ordinary share following the reorganisation, the group said.