Shareholders Disagree on Novomatic’s Offer to Fully Acquire Ainsworth Game Technology

Novomatic’s Proposal to Take Ainsworth Private

European gaming technology leader Novomatic plans to acquire all remaining shares of Ainsworth Game Technology and remove it from the public market. Earlier this year, Novomatic agreed to purchase the outstanding shares of Ainsworth for a cash offer of $1.00 per share through a structured agreement.

Novomatic initially gained control of Ainsworth by acquiring a majority stake of 52.9%. This new move aims to consolidate full ownership and transition Ainsworth into a privately held company.

Concerns Raised by Key Shareholders

Despite Novomatic’s intentions, some of Ainsworth’s prominent shareholders are opposing the takeover bid. Notable investors Allan Gray, Kjerulf Ainsworth, and Spheria Asset Management, collectively holding about 20% of the company’s shares, have expressed their intention to reject the offer. Their opposition significantly impacts the likelihood of the deal proceeding since a rejection by shareholders owning at least 25% of the stock can derail the acquisition.

Two other investors, who wished to remain anonymous, have also indicated disapproval of the proposal.

Arguments Against the Offer

The dissenting shareholders argue that Novomatic’s $1.00 per share offer undervalues Ainsworth, despite it being 35% higher than the share price before the announcement. They claim the bid overlooks the full value of Ainsworth’s property holdings, which they believe justifies a higher price.

Next Steps and Company Response

Ainsworth has stated it is too early to provide a formal response to the situation and is carefully monitoring developments. The company’s shareholders are scheduled to vote on Novomatic’s proposal on August 29, which will determine the future ownership of Ainsworth.