Novomatic’s stake in the Australian gaming supplier Ainsworth Game Technology continues to increase, with efforts spearheaded by associated entities and founder Johann Graf.
The Australian Securities Exchange revealed that a pair of transactions saw a combined entity increase its stake in the firm to just north of 55%.
It comes as the prospect of a previously touted conditional takeover by Novomatic grows increasingly unlikely, after a second takeover bid for Ainsworth Game Technology (AGT), was cited as its ‘best and final’ valuation.
Since then, however, a scheme of arrangement between the two groups has ended, as conditions for a full agreement are less viable.
With the scheme scrapped, Novomatic has pivoted to an unconditional off-market takeover offer at AU$1.00 per share — a bid it describes as its “best and final” offer.
Media reports implied that much of the downfall of the efforts for the arrangement were accelerated by the rebellion of a block of shareholders, galvanised by Kjerulf Ainsworth, son of the founder.
In spite of this, the unconditional offer still being pursued means there is a strong possibility that the deal could go through, especially as the firm increases its stake in the company to 55%, although the path to takeover is no longer guaranteed.
Furthermore, increasing the likelihood of the deal going through are the recommendations of the Ainsworth’s Independent Board Committee (IBC), which has backed the bid, describingNovomatic’s offer as “fair and reasonable”.
The process, however, could be slow, especially in a situation where shareholder discontent over the deal becomes contagious and is felt across the board, complicating Novomatic’s efforts..
Ensuring that Ainsoworth shareholders remain on board with the deal will be crucial to any progress, specifically with Novomatic underpinning that it would not be increasing its offer.
Ainsworth shares were boosted by approximately 32–34% on the morning the proposal was unveiled – underpinning the positive prospects of the takeover taking place.
September 15 will see SBC organise a groundbreaking charity football event in Lisbon. Make sure you get the chance to see some of the most legendary names in football by securing your ticket today at https://www.legendscharitygame.com/
