Ainsworth Game Technology has announced the termination of its transaction deed with Novomatic, effectively ending the Austrian gaming giant’s attempt to take the company private. Ainsworth Game Technology is a manufacturer of gaming machines, known colloquially as pokies, and associated equipment. Novomatic, an Austrian gaming giant, had been pursuing the acquisition since April of last year.
Novomatic initially offered $1 per share for the 47.1 per cent of Ainsworth Game Technology it did not already own. This initial attempt to privatise the company through a scheme of arrangement was blocked by minority investors who deemed the offer insufficient. Subsequently, Novomatic launched an unconditional takeover offer in August and increased its stake to 66.6 per cent.
To proceed with the privatisation, Novomatic needed to secure 75 per cent ownership by February 6. However, as announced to the Australian Securities Exchange (ASX) late Wednesday, this threshold was not met, leading to the termination of the transaction deed.
Ainsworth Game Technology has stated that Novomatic is now restricted from making another offer to minority investors for a minimum of four months, marking a victory for those shareholders who resisted the takeover.
