Kjerulf Ainsworth Resists Novomatic’s Expanding Control Over ATG

(AsiaGameHub) –   Australian gambling firm Novomatic, which holds a majority stake in Australian slot machine provider Ainsworth Game Technology (AGT), appears to be seeking to restrict the takeover capabilities of minority stakeholders. However, Kjerulf Ainsworth, son of the company’s founder Len Ainsworth and a significant minority shareholder in ATG, has voiced opposition to this potential action, asserting that it would contravene the interests of the company’s existing shareholders.

Ainsworth Speaks Against Novomatic’s Attempt for More Influence in ATG

Ainsworth contends that such a move could prevent AGT shareholders from receiving acquisition offers and would solidify the current control by limiting the ability of potential buyers, including himself, to acquire shares. Furthermore, Ainsworth has raised concerns about AGT’s decision to withhold dividends since 2018, despite what he described as robust financial performance and revenue growth across all key markets.

He acknowledged that AGT had cited various reasons for not distributing dividends during this period, such as prioritizing commercialization efforts and its financial standing. While recognizing the importance of sound capital management, he argued that the continued suspension of dividends, given the company’s results, was difficult to justify. This also raises a pertinent question regarding whether AGT’s Board has adequately balanced reinvestment priorities with its obligation to deliver value to shareholders.

These remarks follow Novomatic’s unsuccessful attempt to acquire the remaining shares of ATG just a few months ago in February. Currently, Novomatic possesses approximately two-thirds of ATG. In comparison, Ainsworth’s current shareholding in ATG is slightly over 8%.

What Else Has Ainsworth Been Up to Recently?

Challenging Novomatic’s strategies is not the only recent activity for Ainsworth. He has also been actively campaigning for the return of former AGT CEO Lawrence Levy to the board as a non-executive director. If successful, this could grant Ainsworth considerable influence in the selection of a new CEO, following the recent departure of former chief executive Harald Neumann.

Considering Ainsworth recently submitted an offer to purchase 5.5% of ATG’s ordinary shares at AUD 1.30 ($0.92) per share, this action could be interpreted as another tactic in the apparent power struggle between Novomatic and Ainsworth for control of the company. It is worth noting that if this bid is successful, Ainsworth’s stake in the company would increase from 8.24% to 13.29%.

According to Ainsworth, Levy possesses extensive institutional knowledge of AGT’s operations, strategy, and governance structure. He further stated that Levy brings considerable industry experience, demonstrated leadership abilities, and a strong reputation for integrity and sound decision-making, having previously served as AGT’s CEO between 2019 and 2021 before stepping down for personal reasons.

In related news concerning Novomatic, Austrian prosecutors have recently filed accusations against former Novomatic executives in a bribery investigation. Among those accused are Harald Neumann, who was previously mentioned, and Johann Graf, the company’s founder and owner.