Ainsworth Game Technology (AGT) has confirmed it received a partial takeover offer from its second-largest shareholder, Kjerulf Ainsworth. Ainsworth, the sixth son of pokies billionaire Len Ainsworth, is attempting to prevent Austrian gaming giant Novomatic from taking the company private. Ainsworth Game Technology is a manufacturer and supplier of gaming machines and associated equipment, primarily focusing on the design, development, and distribution of poker machines. Novomatic currently holds a 61.5 per cent stake in Ainsworth, acquired through an off-market takeover.
Ainsworth, who owns 7.3 per cent of shares, has offered to purchase nearly 2.9 per cent of AGT shares he doesn’t own for $1.30 per share. This offer represents a 29 per cent premium over Wednesday’s closing price of $1.01. However, in a statement to the ASX, Novomatic indicated it would not accept the offer. Furthermore, the independent board committee (IBC) continues to unanimously recommend that shareholders accept Novomatic’s existing offer of $1 per share.
Novomatic, which owns the Admiral Casino brand of poker machines, had previously offered to acquire the remaining 47.1 per cent of Ainsworth it did not already own for $1 per share in April. This earlier attempt, structured as a scheme of arrangement, was terminated after failing to secure the necessary support from minority shareholders.
According to Ainsworth, the company has not yet received a bidder’s statement or sufficient information for the IBC to properly assess the new proposal. “As such, shareholders should take no action in relation to the proposed proportionate offer at this stage.” The IBC has stated that, based on the information currently available, it does not consider Ainsworth’s proposed offer to be a superior proposal to that of Novomatic.