Novomatic’s $337M Ainsworth Takeover Bid Faces Shareholder Pushback
Novomatic, Europe’s gaming tech giant and majority shareholder of Ainsworth Game Technology (AGT), is facing fierce resistance to its April bid to buy the remaining 47.1% of AGT shares for A$158.6 million (US$102 million) at A$1 per share, valuing the company at A$337 million.
Minority shareholders, led by Kjerulf Ainsworth, argue the offer undervalues AGT’s assets, while a probe into CEO Harald Neumann’s past adds fuel to the controversy, as reported by Australian Financial Review.
Property Valuation Dispute
Kjerulf Ainsworth, AGT’s second-largest shareholder and son of founder Len Ainsworth, claims the company’s Nevada and Florida properties are worth A$116.1 million, per a Valbridge Property Advisors report, far exceeding the A$68.7 million in AGT’s financials, a 40% gap.
He argues shares should be valued closer to A$3, not Novomatic’s A$1 offer. “We’d like full access to the properties for an updated valuation,” Kjerulf told AFR, demanding transparency on prior valuations and why the board hasn’t addressed the discrepancy.
Other shareholders, including Allan Gray and Kanen Wealth Management, echo his concerns, calling the deal a lowball that shortchanges investors.
CEO Investigation Raises Questions
Adding to the tension, AGT CEO Harald Neumann, formerly Novomatic’s CEO, is under an Austrian corruption probe tied to his Novomatic tenure.
Ainsworth didn’t disclose this to shareholders, claiming legal advice deemed it unnecessary as most investigations were dismissed.
The company’s compliance team cleared Neumann for his 2021 CEO role, noting his licensing in over 100 jurisdictions. Still, the timing of the probe’s publicity, just before an August shareholder vote, has sparked accusations of withheld information, further eroding trust.
Shareholders are still awaiting Novomatic’s scheme booklet, including an independent expert’s report, promised for the August vote but not yet delivered.
Valbridge’s valuation reports haven’t reached AGT’s board, and no half-year financials for June 2025 have been released. “The process of finalizing the scheme booklet is well underway,” an AGT spokesperson said, but delays fuel skepticism.
With Foreign Investment Review Board approval secured, Novomatic eyes a second-half 2025 close, but shareholder opposition could derail it.
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