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Novomatic AG, the big Austrian supplier of gaming gear, has given itself more time to wrap up its takeover of Australian slot maker Ainsworth Game Technology Ltd. This marks the third extension, with the offer now open until 7 PM Sydney time on February 6, unless they pull it sooner. Ainsworth shared the update in a fresh filing to the Australian Securities Exchange. The last deadline was set for the same time on January 30, so this gives shareholders another week to decide. Back in August, Novomatic put forward an unconditional bid of AUD1.00 per share, about $0.69, for all the Ainsworth shares it doesn’t already own. Together with founder Johann Graf, Novomatic controls 66.59 percent of the company, based on Ainsworth’s books as of January 28. That majority stake already gives them a strong say, but snapping up the rest would lock in full control.
How the Offer Came Together
Novomatic kicked off the process last summer with a straightforward cash offer aimed at minority owners. By mid-September, Ainsworth set up an independent board committee that looked hard at the deal and came back with a clear thumbs-up. They told all shareholders to take the offer, figuring it was a solid price for the company’s slot machine business and future potential. That recommendation carried weight, especially since Novomatic already held the reins through its big chunk of shares. The extensions suggest not everyone jumped right away, maybe waiting to see how things play out or weighing other options. Novomatic seems patient, stretching the timeline to build acceptance without rushing the market.
Competing Bid Adds Twist
Things got interesting in late October when Kjerulf Ainsworth, son of Ainsworth founder Len Ainsworth, stepped in with his own play. He offered a so-called proportionate deal, targeting 2.9 percent of each shareholder’s holdings at AUD1.30 per share, a bit higher than Novomatic’s price. Kjerulf stretched his own deadline to January 30, keeping pressure on. Ainsworth made it clear at the time that Novomatic had no interest in going along with that rival bid. The family angle makes it personal, with Kjerulf trying to boost his slice while Novomatic pushes for total ownership. This back-and-forth likely explains some of the delays, as holders pick sides in what feels like a tug-of-war over the company’s direction.
What Full Control Means for Both Sides
For Novomatic, finishing the deal would mean folding Ainsworth’s slot designs and sales networks fully into its global lineup. Ainsworth brings strong play in Australia and parts of Asia, where slots stay popular on casino floors. The AUD1.00 price tags the remaining shares at a level that lines up with recent trading and market views on growth. Independent advice backing the bid helps sway doubters, stressing long-term stability under Novomatic’s wing. On Ainsworth’s end, the board sees the sale as a clean exit for minorities, avoiding drawn-out uncertainty.
Extensions Signal Patience in Play
This latest push-back, the third in a row, shows Novomatic playing a long game. First came a nearly two-month wait after the initial close, now this short hop to early February. It keeps doors open without spooking investors. Kjerulf’s higher offer might pull some, but Novomatic’s majority and board nod give it leverage. As February 6 nears, eyes stay on acceptance rates and whether holdouts budge.
Takeover Race Nears Finish Line
With control already in hand at over two-thirds, Novomatic edges closer to full ownership. A rival family bid tests the waters, but extensions buy time to seal the deal. Ainsworth shareholders face a final call soon, balancing cash now against potential upsides.
Source: GGR Asia
