Novomatic’s plan to buy the shares in Ainsworth Game Technology (AGT) it does not already own faces a challenge from one of Len Ainsworth’s six sons.
As reported by the Australian Financial Review, Kjerulf Ainsworth, the sixth son of the founder – who cut ties with Ainsworth in 2018 – has become the company’s second-biggest shareholder.
The source says that as well as raising his own holding in the company to 4.99 per cent, he is working with his mother, Margarete, and the estate of his late brother Christian, which has led to a 12.3 per cent stake.
Ainsworth’s increased shareholding comes off the back of frustration from other Ainsworth shareholders that AGT is accepting an offer from Novomatic that does not reflect the true value of the business.
Novomatic’s proposal is to pay AU$1 per Ainsworth share, which is a 35 per cent premium to the stock’s closing price Friday, April 25.
The agreement would imply an enterprise value of $336.5m, representing seven times enterprise value-to-EBITDA.
Ainsworth hopes his now-substantial shareholding can challenge the takeover deal, which would be by scheme of arrangement and would require at least 75 per cent of the shares cast on the proposal to go ahead.
He told the AFR: “I said to my mother, this company has our name on it. We’ve been involved in the industry a long time. There’s some sort of family legacy feeling about it all, in addition to generally setting things straight.”
An AGT statement said its Independent Board Committee (IBC) will “continue to engage with all key stakeholders as appropriate and as preparations proceed in relation to the scheme.”
“The IBC continues to maintain its recommendation that shareholders vote in favour of the scheme in the absence of a superior proposal, and subject to the independent expert concluding (and continuing to conclude) that the scheme is in the best interests of AGI shareholders," the statement added.
“Under the scheme, each AGI minority shareholder will have their opportunity to consider the Scheme Booklet and independent expert's report prepared in respect of the scheme, and to vote on the scheme at a scheme meeting to be held later in the year.
“The company will provide further updates as appropriate and in accordance with its continuous disclosure obligations.”
Alongside its response to the interview, Ainsworth published a trading update, reporting that it expects a profit before tax of around $14m for the six months ending June 30, 2025, similar to the $14.3m posted in the same period last year.
Revenue is expected to increase by six per cent, chiefly due to revenue contributions in Australia following the release of the Raptor cabinet in February this year.
Revenue in Latin America and Europe is expected to be 14 per cent down, with AGT noting that the “challenging conditions due to import restrictions in Mexico have remained.”
The decline in revenue would come despite “increased contributions from recurring revenue from units under gaming operation in this region.”
The North American segment margin is expected to be maintained and similar to the prior half-year.
Underlying EBITDA is expected to be similar to the $26.8m reported in the first half of the last calendar year.
