Ainsworth Game Technology (AGT) has confirmed that the latest takeover attempt by Novomatic has failed following the termination of the Transaction Implementation Deed.
The Austrian company had been pursuing AGT since April, initially offering shareholders AU$1 ($0.71) per share for the remaining shares it did not control.
However, the first conditional takeover attempt failed after AGT’s minority shareholders, led by Kjerulf Ainsworth, son of AGT founder Len Ainsworth, accused Novomatic of undervaluing the ASX-listed company.
Since then, Novomatic continued its efforts through an off-market offer, increasing its controlling stake to 66.59% as of 29 January.
Nevertheless, the latest attempt to privatize AGT encountered significant obstacles. Although full details have not yet been disclosed, it is clear that shareholders once again rejected Novomatic’s offer, preventing the company from reaching the 75% threshold required for a full privatization of AGT.
“As the Scheme has not become effective on or before the End Date, and the Novomatic Takeover Offer has lapsed, Ainsworth notifies the termination of the Transaction Implementation Deed in accordance with clause 13.1(a) of the agreement, with immediate effect,” AGT said after the offer deadline ended on 6 February at 7:00 PM.
In response to Novomatic’s actions, Kjerulf Ainsworth announced his own offer to increase his shareholding by 2.9%, offering AU$1.30 ($0.92) per share.
The deadline for this offer has passed; however, at the time of writing, there is no update on its outcome.
At present, Novomatic is prohibited from making another offer to acquire control of AGT for four months from the closing date of the previous offer.
Don’t forget to subscribe to our Telegram channel!
