Kjerulf Ainsworth, the son of the founder of Ainsworth Game Technology (AGT), has responded to Novomatic’s takeover pursuit of AGT, by launching his own partial bid for control of the company.
The ASX-listed developer confirmed that Ainsworth is seeking to acquire an additional 2.9% of the company’s shares by offering existing shareholders AU$1.30 per share.
“I believe AGI 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.
“The offer demonstrates a long-term interest in and commitment to the future of AGI.”
War of words with Novomatic
The proposition is just the latest chapter in Kjerulf Ainsworth’s long-running disagreement with Novomatic, AGT’s major shareholder.
Earlier this year, Novomatic launched its own bid to take full control of AGT, offering shareholders $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.
Notably, he shared his belief that the offer should have been closer to $3 per share.
AGT has confirmed that Novomatic has already rejected Ainsworth’s offer, meaning the maximum number of shares he can acquire will be less than 1% of AGT’s total number of shares.
Although Novomatic’s direct takeover attempts continue to stall, the company has pushed on with an off-market bid, increasing its shareholding of AGT to 61.5% at the time of writing.
CEO departure
While AGT contends with an ongoing battle for the company, it has also begam the search for a new CEO after Harald Neumann stepped down after the Nevada Gaming Control Board (NCGB) informed AGT to withdraw his licence application.
Formerly of Novomatic, Neumann was hoping to lead the takeover. However, his position came under question after the Nevada board’s position on his licence application became clear.
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.
