Power Struggles Deepen at Ainsworth Game Technology
Ongoing Internal Conflicts at Ainsworth Game Technology
Ainsworth Game Technology, the Australian slot machine manufacturer founded by gaming pioneer Len Ainsworth, is currently embroiled in escalating internal conflicts. The latest development involves Len’s son, Kjerulf Ainsworth, who is attempting to increase his ownership stake from 7.27% to just below 10% in an effort to gain more influence within the company.
Kjerulf Ainsworth Challenges Majority Shareholder with Increased Offer
Kjerulf has proposed buying shares at AUD 1.30 each, which represents a 30% premium over the AUD 1.00 per share offer from Novomatic AG, an Austrian gaming conglomerate and the company’s majority shareholder. This new bid has reignited longstanding tensions following a failed acquisition attempt by Novomatic earlier this year, which was blocked by Kjerulf and other minority shareholders.
In a communication to shareholders, Kjerulf emphasized that his bid aimed to protect shareholder value rather than to wrest control of the company. He noted that regulatory restrictions prevent him from exceeding a 10% ownership stake but hinted at the possibility of making further offers depending on market conditions and investor interest.
“I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of AGI.”
Kjerulf Ainsworth
Despite the careful wording of his message, Kjerulf’s move highlights the growing divisions within AGT’s ownership. Novomatic has steadily increased its holdings to 61.5%, seeking to solidify its control over the company’s operations and strategic direction. Conversely, Kjerulf’s bid is positioned as an effort to maintain Australian influence and counter what some perceive as excessive foreign control.
Recent Leadership Changes Add to Corporate Uncertainty
Leadership upheavals at AGT are adding to the company’s instability. CEO Harald Neumann, formerly an executive at Novomatic, stepped down recently after the Nevada Gaming Control Board advised him to withdraw his license application amid reports linking him to investigations of alleged bribery and political funding during his time at Novomatic.
Following Neumann’s departure, the company appointed Chief Operating Officer Ryan Comstock as the interim CEO. Based in Las Vegas, Comstock is recognized for his technical expertise and practical management style. AGT has announced that its search for a permanent CEO will consider both internal and external candidates.
Company Faces Uncertain Future Amidst Power Struggles
These events place Ainsworth Game Technology in a vulnerable position as it contends with diminishing investor confidence, a leadership transition, and an ongoing conflict between its founding family and the majority shareholder. Analysts view Kjerulf’s increased stake as more than just a financial move—it represents a desire to influence the company’s strategic path going forward.
