Austrian gaming giant Novomatic’s move to acquire Ainsworth Game Technology is facing pushback from minority shareholders who argue that the offered price undervalues the company, creating tension in the shareholder community.
Key Points
- Novomatic aims to fully acquire Ainsworth by offering AUD 1 per share, sparking concerns from some shareholders.
- The offer represents a 35% premium over Ainsworth’s pre-offer trading price, valuing the company at approx. AUD 336.5 million.
- Kanen Wealth Management, holding about 2% of Ainsworth’s shares, publicly criticises the offer as inadequate.
- Critics argue that the proposed valuation fails to reflect Ainsworth’s strong financial performance and future prospects.
- The deal is anticipated to face a shareholder vote in the second half of 2025, dependent on expert evaluations of its fairness.
Content Summary
In April 2025, Novomatic’s pursuit of a full takeover of Ainsworth Game Technology is met with resistance from minority shareholders concerned that the AUD 1 per share offer underestimates the company’s value. Ainsworth’s Independent Board Committee (IBC) has advised shareholders to support the deal, claiming it provides solid value. However, Kanen Wealth Management has rejected the proposal, suggesting a valuation closer to AUD 1.75 per share is more appropriate based on recent earnings and market potential. As tensions rise, the future of the acquisition hinges on approval from shareholders and a final expert analysis.
Why should I read this?
If you’re keeping an eye on the gaming industry, this article dives into a significant move that could reshape Novomatic’s footprint in the market. Understanding the dynamics of shareholder reactions helps you appreciate the complexities involved in corporate acquisitions. We’ve streamlined the details for you, so you won’t be left wondering what’s really at stake!
