Austrian gaming behemoth Novomatic AG has extended its unconditional offer to acquire the remaining shares of Ainsworth Game Technology (AGT) by one month, setting a new closing deadline of December 3.
This move underscores Novomatic’s determined strategy to secure full ownership and consolidate control of the Australian slot machine manufacturer, despite ongoing resistance from a group of minority investors.
The off-market offer values Ainsworth at approximately AUD 158.6 million (USD 103.1 million), with a purchase price set at AUD 1.00 per share. Ainsworth’s Independent Board Committee (IBC) has formally advised all shareholders to accept the proposal, stating that an independent expert’s assessment determined the deal to be “fair and reasonable”—unless a superior offer materializes before the new deadline.
Novomatic has steadily increased its stake in AGT throughout 2024, raising its ownership from 52.9% to 61.5% since first revealing its full takeover ambitions in April. While the Austrian giant initially pursued the acquisition via a Scheme of Arrangement, that approach was successfully blocked by a shareholder group led by Kjerulf Ainsworth, the son of AGT’s founder, Len Ainsworth.
The internal struggles at AGT have been compounded by high-level uncertainty. Former Novomatic executive and AGT CEO, Harald Neumann, resigned earlier after the Nevada Gaming Control Board recommended he withdraw his U.S. license application due to a political funding investigation in Austria. His departure has occurred at a pivotal moment in the company’s ownership battle.
The resistance to Novomatic’s bid remains strong, led by Kjerulf Ainsworth. He has launched a competing, limited proportional takeover offer to increase his personal stake from 7.27% to 9.9%, significantly pricing his bid at AUD 1.30 per share—which is notably above Novomatic’s standing offer.
His opposition is motivated by a desire to protect shareholder value and maintain Australian influence over the company’s strategic future and intellectual property. Although regulatory restrictions prevent him from exceeding a 10% ownership threshold, he has hinted at potential future market actions.
The ongoing battle has exposed deep divisions among AGT investors, dividing those seeking financial stability through Novomatic’s full integration from those advocating for the retention of local control.
Novomatic’s success in consolidating the company would cement its global footprint and secure full control over Ainsworth’s technology portfolio, but this depends on overcoming the sustained minority shareholder resistance before the new December deadline.
Kjerulf Ainsworth, Ainsworth Game Technology:
I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of AGT.
