Novomatic AG is moving forward with plans to take full control of Ainsworth Game Technology Ltd, the Australia-listed slot machine maker. The Austrian gaming equipment supplier already holds a 52.9 percent stake in Ainsworth and now aims to buy the remaining 47.1 percent.
Good to know
- Novomatic already owns 52.9 percent of Ainsworth Game Technology.
- Shareholders are offered a 35 percent premium compared to the last closing price.
- The acquisition deal values Ainsworth at about AUD336.5 million.
The two companies have entered into a scheme implementation deed, according to a Monday filing from Ainsworth. Under the proposed arrangement, Novomatic will pay AUD1.00 (US$0.64) in cash for every Ainsworth share it does not yet own.
Shareholders are being offered a price that reflects a 35 percent premium over Ainsworth’s closing stock price on the Thursday before the announcement. Friday had been a public holiday in Australia, so there was no trading on that day. The proposed offer values Ainsworth at around AUD336.5 million, based on the information shared in the filing.
The offer from Novomatic has been described as “best and final” and will not be raised. However, if Ainsworth pays a dividend before the transaction closes, that amount will be deducted from the cash consideration offered to shareholders.
An independent board committee at Ainsworth has reviewed the proposal and “unanimously recommends Ainsworth shareholders vote in favour of the scheme.” The filing also included a comment from Ainsworth chairman Daniel Gladstone, who said, “the proposal put forward by Novomatic… already the majority shareholder of Ainsworth, represents a significant premium to long-term trading value and is compelling for Ainsworth minority shareholders.”
The completion of the deal will depend on standard conditions, including the approval of Ainsworth shareholders.
To manage the transaction, Ainsworth has engaged Macquarie Capital as its exclusive financial adviser and Clayton Utz as its legal adviser.
If all conditions are met and shareholders approve, Novomatic will move from majority owner to full owner, consolidating its position in the slot machine market further.
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