An Independent Board Committee has unanimously recommended that investors accept a share purchase offer from the son of the founder of Ainsworth Game Technology (AGT).
Kjerulf Ainsworth, son of the company’s founder Len Ainsworth, has offered shareholders AU$1.30 (£0.69) per share to acquire a maximum of 5.5% of each shareholder’s stake in the company – potentially raising his own interest in the company to a maximum of 13.29%.
This follows a similar offer made last year by Kjerulf Ainsworth at the same price which ended on 30 January and saw him acquire 318,529 shares.
A letter to shareholders from the Independent Board Committee, read: “While the Proportional Offer only applies to a small proportion of your Ainsworth Shares, the Independent Board Committee considers that the Offer Price is priced at an acceptable premium and has therefore unanimously recommended that Ainsworth Shareholders accept the Proportional Offer of $1.30 per Ainsworth Share (subject to there being no superior proposal).”
The committee noted that the offer represents an over 23.8% premium on the closing price of AGT’s shares on the day before the offer was announced, and a 23.6% premium to the one-month volume-weighted average price of AGT shares traded up to the last trading day before the announcement date.
War of words with Novomatic
This offer is just the latest twist in the long-running saga over control of AGT.
Kjerulf Ainsworth lodged his first offer in retaliation to attempts by Novomatic, which holds the largest share in AGT, to complete a takeover of the slot manufacturer.
This attempt ultimately failed after Novomatic’s Transaction Implementation Deed was terminated in February. However, the Austrian firm has continued to increase its stake in AGT to 67.39% through an off-market takeover bid.
Novomatic offered investors AU$1 (£0.53) per share, which, at the time, investors, led by Ainsworth, described as considerably undervaluing the company.
This was despite the Independent Board Committee similarly backing the offer made by Novomatic and recommending shareholders accept it in the absence of a superior proposal.
Alongside shares acquired through his first offer, Ainsworth has acquired a further 2.7 million shares on market at prices between AU$1.04 (£0.55) and AU$1.09 (£0.59), according to the latest release.
AGT’s investors now have until 27 April to make a decision on the offer, unless the deadline is extended as it was previously.
