Kjerulf Ainsworth, son of company founder Len Ainsworth, has launched a proportional takeover bid to acquire an additional 2.9% of Australian slot machine supplier Ainsworth Game Technology (AGT).
According to information sent to Inside Asian Gaming, Ainsworth is offering existing shareholders AU$1.30 per share which he noted represents a 30% premium to the unconditional AU$1.00 per share offered by majority shareholder Novomatic AG.
A scheme of arrangement previously announced by Novomatic and AGT was terminated in August after a bloc of shareholders led by Kjerulf Ainsworth rallied enough support to deny the transaction from satisfying conditions precedent.
Ainsworth’s latest move would if fully accepted see his interest in the company grow from 7.27% to 9.9% – keeping it below the 10% threshold that would trigger potential regulatory complications under gaming licence rules.
“While currently constrained by regulatory requirements that delays me from owning 10% or more of [AGT], I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of [the company],’’ Ainsworth said in a letter to shareholders.
Ainsworth, who previously accused AGT of undervaluing property assets under its original scheme of arrangement with Novomatic, reiterated his view that AGT is currently significantly undervalued.
He also stated his intention to make further proportional takeover offers in the future, depending on acceptance levels, market conditions and ongoing assessment of the company’s strategic direction.
“The offer represents an opportunity for shareholders of [AGT] to realize cash at a significant premium for a portion of their [AGT] shares,’’ he said, adding that he would request a 12-month seat on the board to represent minority shareholders.
“This offer demonstrates that I have a long-term interest in the future of Ainsworth Game Technology and am prepared to invest to ensure the company is successful.”
Novomatic’s unconditional takeover offer has seen the Austrian gaming giant increase its stake in AGT from 52.8% to 61.5% currently.
The ongoing battle for control of the company has also claimed at least one scalp, with AGT CEO Harald Neumann stepping down earlier this month after the Nevada Gaming Control Board (NGCB) opted against renewing his license in the state.
Neumann had in recent months made headlines in Australia after media were alerted to an ongoing investigation in Austria in relation to alleged bribery and illicit political funding during his time as CEO Novomatic. Neumann has denied the allegations.
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