Novomatic’s dogged pursuit of Ainsworth Game Technology (AGT) is set to continue as the firm extends the deadline for its off-market takeover bid.
A filing by AGT with the Australian Securities Exchange confirmed that the Austrian company’s unconditional offer has been extended to 3 December, having been set to expire on 3 November.
The decision comes just weeks after the son of the founder of AGT, Kjerulf Ainsworth, launched his own partial bid to increase his control of the company and continue the pair’s long-running disagreement.
Novomatic first launched a bid to take full control of AGT in April, offering shareholders AU$1 per share.
However, the proposal was terminated following opposition from major shareholders, including Ainsworth, who accused the Austrian company of undervaluing AGT US property assets.
Since then, Novomatic has pushed on with an off-market bid, increasing its shareholding to 61.5% at the time of writing.
In response, Ainsworth has offered existing shareholders AU$1.30 per share as he seeks to increase his shareholding from 7.27% to 9.9%.
Ainsworth’s offer has already been rejected by Novomatic, meaning the maximum number of shares Ainsworth can acquire will be less than 1% of AGT’s total number of shares.
Alongside Ainsworth’s counter-efforts, Novomatic’s takeover attempt has been further hindered by the resignation of Harald Neumann as AGT’s CEO.
Formerly of Novomatic, Neumann was hoping to lead the takeover. However, 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.
They also accused him of being hostile and belligerent with the agents who were conducting the vetting process, and officials noted that he did not provide direct answers when questioned during the hearing.
AGT’s COO, Ryan Comstock, has stepped in as acting CEO until a permanent replacement is found.
