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Austrian gaming giant Novomatic AG has extended its offer to acquire the remaining shares of Ainsworth Game Technology (AGT) by one month, setting a new deadline of December 3. The move underscores Novomatic’s determination to consolidate control of the Australian slot machine manufacturer despite resistance from minority investors.
Novomatic pushes for full control
The unconditional off-market offer, initially set to close on November 3, values Ainsworth at approximately AUD 158.6 million (USD 103.1 million), offering shareholders AUD 1.00 per share. Ainsworth’s Independent Board Committee has urged shareholders to accept the proposal, citing an independent expert’s assessment that the deal is “fair and reasonable” — unless a superior offer emerges before the new deadline.
Novomatic has gradually strengthened its position throughout 2024, increasing its ownership from 52.9% to 61.5% since revealing full takeover ambitions in April. While the company first sought to complete the deal via a Scheme of Arrangement, that approach was blocked by a shareholder group led by Kjerulf Ainsworth, the son of founder Len Ainsworth.
Adding to internal strain, CEO Harald Neumann, a former Novomatic executive, resigned after the Nevada Gaming Control Board advised him to withdraw his U.S. license application amid a political funding investigation in Austria. His exit has heightened uncertainty within Ainsworth during a pivotal moment in the company’s ownership struggle.
Minority investors push back
Despite the board’s endorsement, several minority shareholders remain firmly opposed to the Novomatic bid. Leading the resistance, Kjerulf Ainsworth has launched a limited proportional takeover offer to raise his personal stake from 7.27% to 9.9%, priced at AUD 1.30 per share — well above Novomatic’s offer.
Ainsworth said his bid is intended to protect shareholder value and preserve Australian influence over the company’s future direction, not to challenge control outright.
“I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of AGT,” said Ainsworth.
Regulatory restrictions prevent him from owning more than 10% of the company, but he has hinted at potential future actions depending on market developments.
Growing divisions in Ainsworth’s ownership
The competing bids have deepened tensions among investors, exposing the divide between those seeking stability under Novomatic and those who want to retain local control. Ainsworth’s supporters argue that a full takeover could shift decision-making and intellectual property away from Australia, while others see integration with Novomatic as a path toward financial recovery.
Ainsworth Game Technology has faced mounting challenges in recent years, including stagnating sales in key markets and rising competition from emerging gaming technology firms. For Novomatic, completing the acquisition would cement its global presence and bring full control over Ainsworth’s technology portfolio — but only if it can overcome growing shareholder resistance before the December deadline.
Source: Gambling News
