Son of company founder issues bid to increase Ainsworth holding in latest move against Novomatic control
Summary
Kjerulf Ainsworth, son of Ainsworth Game Technology (AGT) founder Len Ainsworth, has launched a proportional takeover offer to buy an additional 2.9% of AGT at AU$1.30 per share — a 30% premium to Novomatic AG’s unconditional AU$1.00 offer.
If fully accepted, Kjerulf’s stake would rise from 7.27% to 9.9%, deliberately staying under the 10% licence threshold that would create regulatory complications. He says the company is significantly undervalued, plans further proportional offers depending on circumstances, and will request a 12-month board seat to represent minority shareholders.
Novomatic’s unconditional approach has already pushed its stake to around 61.5%. The takeover tussle previously saw a scheme of arrangement with Novomatic terminated in August after Kjerulf led a shareholder bloc to block it. The corporate battle has also contributed to CEO Harald Neumann stepping down following Nevada gaming-licence issues and related investigations in Austria, which Neumann denies.
Key Points
- Kjerulf Ainsworth has tabled a proportional offer of AU$1.30 a share for 2.9% of AGT, a 30% premium to Novomatic’s AU$1.00 unconditional offer.
- The offer would raise his stake from 7.27% to 9.9%, intentionally below the 10% regulatory trigger for gaming-licence complications.
- Kjerulf argues AGT is materially undervalued and says the offer gives shareholders a chance to realise cash at a premium for part of their holding.
- He plans potential future proportional offers and would seek a 12-month board seat to represent minority shareholders.
- Novomatic already controls a majority stake (approximately 61.5%) after its unconditional takeover activity.
- The takeover fight has led to management upheaval: CEO Harald Neumann resigned after Nevada licence renewal issues and related investigations in Austria.
Why should I read this?
Short version: family scuffle vs. corporate giant — and it matters. Kjerulf’s cheeky premium offer is a direct attempt to give shareholders an alternative to Novomatic, keep regulatory headaches at bay and push for a meaningful minority voice on the board. If you care about who runs AGT, how valuation and licences affect deals, or where the Australian slots industry is heading, this is the quick scoop you need.
Context and relevance
This is more than a single share bid — it’s a strategic manoeuvre in an ongoing control battle. By offering a premium for a small parcel and stopping short of a 10% holding, Kjerulf is navigating Australian gaming-licence rules while trying to build influence and protect minority shareholders. The move highlights three industry vectors: consolidation by large suppliers (Novomatic), activist/shareholder resistance from founding families, and the regulatory power of gaming licences (illustrated by the recent Nevada licence denial and resulting CEO exit).
For investors and industry observers, the outcome could affect AGT’s governance, future M&A dynamics in the gaming supply sector, and precedent for how founders or family members can push back against strategic acquisitions. Watch for acceptance levels, any follow-up proportional offers, and whether Kjerulf secures the proposed board seat.
