Ainsworth Game Technology‘s (AGT) second-largest shareholder has accused the company of undervaluing its US property assets amid Novomatic’s tense takeover attempt.
Kjerulf Ainsworth, son of founder Len Ainsworth, claims that the poker machine manufacturing group’s valuation of its US properties is 40% lower than his own commissioned evaluation.
According to the Australian Financial Review, properties owned by AGT in Nevada and Florida were valued at AU$116m (£56.4m) by Valbridge Property Advisors, while AGT’s own financials value the properties at AU$68.7m (£33.5m).
Novomatic secured a 52.9% controlling stake in AGT in 2018 and proposed a $1 per share offer in April to purchase the remaining 47.1% for approximately $158.6m.
However, Kjerulf Ainsworth has derided the offer, stating that he believes it should be closer to $3 per share.
He told the Australian Financial Review that he wants a new valuation of the company’s US assets and an answer to how the current offer from Novomatic represents value for shareholders.
“We’d like full access to the properties for an updated valuation,” he added. “A clear answer on when the properties were last valued, by whom, the assessed value and the methodology … an answer as to why the independent board about the scheme has not addressed the property valuations.”
Other AGT shareholders, including Allan Gray, Spheria Asset Management and Kanen Wealth Management, have also expressed their disappointment in the proposal, stating that it undervalues the business.
AGT’s stocks are currently trading at $0.98, well below their 2013 peak of $4.50 and five-year high of $1.40 in 2021.
Shareholders are now awaiting a scheme booklet for the takeover deal, which will include the report of an independent expert.
Although AGT remains the biggest target for Novomatic, the Austrian-based supplier began the year by announcing the acquisition of Viking Casino’s portfolio of 11 French gaming properties.
The Vikings Casino portfolio included a number of casinos along the Gold Coast of France, ranging in size from 60-150 slot machines.
“With the acquisition of Vikings Casinos, we are consistently pursuing our international growth strategy and strengthening our position as a leading provider in the European gaming market. With this step, we have successfully laid the foundation for further sustainable growth in France,” said Executive Board Member of NOVOMATIC AG Stefan Krenn at the time.
