Kjerulf Ainsworth, the son of the founder of Ainsworth Game Technology (AGT), has extended the period for which his share takeover offer is valid.
The ASX-listed developer confirmed that Kjerulf Ainsworth has opted to set a new deadline of 30 January, after his offer to purchase 2.9% of fully paid ordinary shares in the company for AU$1.30 per share was set to expire on 23 January.
Ainsworth first announced his intention to increase his share in his father’s company in October in retaliation for a wider takeover bid from Novomatic.
The feud between Ainsworth and the Austrian supplier has been long-running, with Ainsworth deriding Novomatic’s own earlier bid to take full control of AGT, offering $1 per share.
“I believe AGT is currently significantly undervalued, and that it represents an excellent investment opportunity in an industry that continues to grow globally,” Ainsworth said in a letter to the ASX upon the announcement of his offer.
Although Ainsworth previously stated his belief that Novomatic’s offer should have been closer to $3 per share, he has offered less than half of this figure himself.
Novomatic pushes on despite setbacks
Novomatic continues to push on with its dogged pursuit of the company despite numerous setbacks.
The company was forced to terminate its initial proposal following opposition from major shareholders. Meanwhile, former Novomatic CEO Harald Neumann was forced to stepdown as the CEO of AGT after his position came under question after the Nevada Gaming Control Board (NCGB) informed AGT to withdraw his licence application.
In a public hearing in front of the board, members questioned Neumann over accusations of misleading regulatory agents, suppressing phone records and lying on a US visa application.
Novomatic had hoped that Neumann would lead the company’s takeover bid. However, AGT’s COO, Ryan Comstock, has been forced to step in as acting CEO until a permanent replacement is found.
As it stands, Novomatic has a 61.5% shareholding of AGT as it has pushed on with an off-market bid.
Meanwhile, Kjerulf Ainsworth is hoping to extend his own shareholding in AGT from 7.27% to 9.9%.
