Ainsworth Game Technology’s (AGT) second-largest shareholder, Kjerulf Ainsworth, son of the company’s founder, Len Ainsworth, has accused management of undervaluing its US-based assets amid a takeover attempt by Novomatic. He claims that the valuation of AGT’s US assets is 40% lower than the results of an independent appraisal he personally commissioned.
According to the Australian Financial Review, AGT-owned properties in Nevada and Florida were valued at AU$116 million (approximately £56.4 million) by Valbridge Property Advisors. In comparison, AGT’s financial statements list their value at only AU$68.7 million (approximately £33.5 million).
Novomatic acquired a 52.9% controlling stake in AGT in 2018 and, in April this year, made a $1-per-share offer for the remaining 47.1%, amounting to approximately $158.6 million.
Ainsworth criticized the offer, stating that the real price should be closer to $3 per share. In an interview with AFR, he said he is demanding a new valuation of the US assets and an explanation as to how Novomatic’s current offer represents fair 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 several casinos along the Gold Coast of France, ranging in size from 60 to 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.
Don’t forget to subscribe to our Telegram channel!
