Kjerulf Ainsworth’s New Initiative to Expand His Stake in Ainsworth Game Technology
New Takeover Attempt to Boost AGT Stake
Kjerulf Ainsworth, son of Len Ainsworth, the founder of Ainsworth Game Technology (AGT), has initiated a new effort to increase his ownership in the Australian slot machine company. He has launched a proportional takeover bid aimed at acquiring an additional 2.9% of AGT shares, proposing to pay AU 1.30 (approximately $0.84) per share to existing shareholders. This offer is notably about 30% higher than the AU 1.00 (about $0.64) per share offered by the majority stakeholder Novomatic AG.
Offering Shareholders an Alternative Choice
This move follows the failure of an earlier arrangement between AGT and Novomatic, which was halted when Kjerulf led a group of shareholders who prevented the deal from meeting its conditions. If this new bid is fully successful, Ainsworth’s ownership would increase from 7.27% to 9.9%, remaining below the 10% threshold that triggers regulatory concerns under Australian gaming licensing laws.
Ainsworth has expressed that shareholders deserve an alternative option that better represents the true value of the company. He believes AGT undervalues its property holdings and reiterated that the company’s current valuation does not reflect its real worth. Depending on shareholder response, market conditions, and his ongoing review of AGT’s strategy, he indicated that he might propose additional proportional takeover offers in the future.
Commitment to AGT’s Long-Term Success
Describing his offer as a significant opportunity for shareholders to receive cash at a premium for part of their shares, Ainsworth also plans to request a 12-month seat on the board. This role would allow him to represent minority shareholders and demonstrate his long-term commitment to the company’s future.
Meanwhile, Novomatic has been strengthening its dominance, raising its ownership from 52.8% to 61.5% through an unconditional takeover offer.
Leadership Changes Amid Ongoing Control Struggle
The clash for control over AGT has also resulted in leadership changes. Earlier this month, the company’s CEO, Harald Neumann, stepped down after the Nevada Gaming Control Board declined to renew his license. Neumann had recently faced scrutiny in Australia connected to an investigation in Austria regarding allegations of bribery and illicit political donations during his time at Novomatic, allegations which he denied.
