Ainsworth To Vote For the Sale of its Stake to Novomatic
Ainsworth, the Australian gaming machine developer and manufacturer, has made an announcement regarding its next general meeting. This meeting is going to take place on the 27th of June, and it is going to include a voting process regarding the sale of its controlling stake of its shares to its Aussie rival, Novomatic. This proposed sale is going to be worth approximately 473.3 million dollars. During the meeting that will gather the shareholders on June 27, the shareholders are going to be asked to approve of the sale of the controlling stake (52.52%) of the company, which is owned by the chairman and founder of the company, Len Ainsworth. This sale is going to be the Gumpoldskirchen-based company, Novomatic. If the sale is successful and the general meeting votes “yes”, the company is still going to retain a relatively small number of shares that would be subject to the employee options under the name of the Ainsworth Share Trust. The company is also going to retain its listing on the Aussie Securities Exchange.
The Sydney based company has first proposed this transaction that would involve 172.1 million shares back in February, with the directors recommending this tender 3 months after. According to a statement by the company, Ainsworth Game Technology’s independent directors are going to confirm their recommendation as they vouch for the favor of the proposed sale, especially in the absence of any other substantial offer. If the shareholders during the upcoming meeting approve of this transaction and offer by Novomatic, Ainsworth Game Technology has announced that the management teams and the current board of the company are going to stay in their positions, with the nominated additional Novomatic directors.
In addition, Ainsworth Game Technology has stated that Margarete Ainsworth, the wife of Len Ainsworth who holds an 8.9% stake in the company through the Votraint entity is not going to take part in the voting process, according to the agreement that they have with the Takeovers panel of Australia. If the sale goes through and the shareholders agree in the vote, Mr. Len Ainsworth and his wife, through Votraint combined will hold 10.15% of the share. As per a statement by Ainsworth Game Technology, this percentage of the shares would be a blocking stake according to Chapter 6A of the 2001 Corporations Act. This could be used in order to reduce the likelihood of another takeover.