Kjerulf Ainsworth Launches New Bid for AGT Shares

Kjerulf Ainsworth, son of Ainsworth Game Technology (AGT) founder Len Ainsworth, is making a fresh move to increase his stake in the Australian slot machine supplier. 

To this extent, he has launched a proportional takeover bid to acquire an additional 2.9% of AGT, offering existing shareholders AU 1.30 ($0.84) per share. The price is roughly 30% higher than the AU1.00 ($0.64) per share offered by majority shareholder Novomatic AG.

Shareholders Deserve “Access to an Alternative Offer”

The bid follows the collapse of a previous scheme of arrangement between AGT and Novomatic, which ended in August after Kjerulf led a shareholder bloc that blocked the transaction from meeting the required conditions.

If this latest offer is fully accepted, Ainsworth’s stake would grow from 7.27% to 9.9%, keeping him under the 10% threshold that could trigger regulatory hurdles under Australian gaming licence rules.

“I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of [the company],” Ainsworth wrote to shareholders.

He has consistently argued that AGT undervalues its property assets, and he reiterated his view that the company is significantly undervalued. He also signaled the possibility of future proportional takeover offers, depending on acceptance levels, market conditions, and his ongoing evaluation of AGT’s strategy.

“I Have a Long-Term Interest in the Future of AGT” 

Ainsworth described his offer as “an opportunity” that would allow shareholders “to realize cash at a significant premium” for a portion of their shares, further explaining that he would seek a 12-month board seat to represent minority shareholders and prove his “long-term interest in the future of Ainsworth Game Technology.”

Meanwhile, Novomatic has continued to consolidate its control, increasing its stake from 52.8% to 61.5% through its unconditional takeover offer.

The battle for control has also led to executive fallout. AGT chief executive officer Harald Neumann resigned earlier this month after the Nevada Gaming Control Board chose not to renew his licence in the state. Neumann had recently been under media scrutiny in Australia following an investigation in Austria into alleged bribery and illicit political funding during his time at Novomatic, accusations which he denied.