Kjerulf Ainsworth Challenges Novomatic’s Expanding Influence Over Ainsworth Game Technology
Background on Novomatic and Ainsworth Game Technology
Novomatic, an Australian gambling corporation and the majority owner of Ainsworth Game Technology (AGT), a notable slot machine supplier, aims to restrict the takeover rights of minority shareholders. This move has faced opposition from Kjerulf Ainsworth, the son of AGT’s founder Len Ainsworth and a key minority stakeholder, who argues that such restrictions would undermine the rights and interests of existing shareholders.
Kjerulf Ainsworth’s Opposition to Novomatic’s Plans
Ainsworth contends that Novomatic’s proposed measures could prevent shareholders from receiving competitive offers and reinforce the current control structure by blocking access for potential buyers, including minority shareholders like himself. He also raised concerns over AGT’s decision not to pay dividends since 2018, despite reporting robust financial performance and revenue growth across major markets.
Although the company cited reasons such as prioritizing commercialization efforts and its financial standing for withholding dividends, Ainsworth questions the justification of this ongoing dividend suspension given the company’s strong results. He believes this raises important questions about whether AGT’s Board has properly balanced reinvestment needs with its duty to provide returns to shareholders.
These issues have surfaced shortly after Novomatic’s unsuccessful attempt to acquire the remaining shares of AGT earlier this year. Currently, Novomatic holds approximately two-thirds of AGT, while Ainsworth owns a smaller stake of just above 8%.
Recent Activities of Kjerulf Ainsworth
Beyond challenging Novomatic’s influence, Kjerulf Ainsworth has been advocating for the reinstatement of former AGT CEO Lawrence Levy as a non-executive director. Should Levy rejoin the board, Ainsworth’s influence over the appointment of a new CEO, following the recent exit of Harald Neumann, could significantly increase.
Ainsworth has also recently put forward a bid to purchase an additional 5.5% of AGT shares at AUD 1.30 each, which if successful, would raise his stake to 13.29% from 8.24%. This initiative could be seen as part of the ongoing contest for control between Novomatic and Ainsworth within the company.
Ainsworth praises Levy for his deep institutional knowledge, leadership skills, and integrity. Levy led AGT as CEO from 2019 to 2021 before stepping down due to personal reasons.
Related Legal Issues Concerning Novomatic
In other developments involving Novomatic, Austrian prosecutors have recently brought bribery charges against former executives of the company. Among those implicated are Harald Neumann and Johann Graf, the founder and owner of Novomatic.
