Austrian gaming giant Novomatic is facing a major setback in its plan to take Ainsworth Game Technology (AGT) private, with influential shareholders signaling their intent to block the deal.
The Australian Financial Review reports that investment firms Allan Gray and Spheria Asset Management, along with AGT founder Kjerulf Ainsworth, collectively controlling about 20% of the company, have announced they will vote against the proposed A$1 per share acquisition. While the offer reflects a 35% premium over AGT’s recent trading price, dissenting investors argue it undervalues the company’s underlying assets, intellectual property, and long-term market position.
Ainsworth accused of a bad move to sell cheap to Novomatic.
Under Australian corporate law, if shareholders holding 25% or more of voting rights reject the proposal, the transaction will fail. Given Novomatic already owns approximately 52.9% of AGT and cannot vote its own shares in this process, the opposition from just a fifth of the shareholder base leaves the deal in a precarious position ahead of the August 29 vote.
The privatization plan was pitched as a strategic move to streamline decision-making, delist from the Australian Securities Exchange, and integrate AGT more fully into Novomatic’s global operations, especially across the Asia-Pacific and U.S. gaming markets. However, minority shareholders have criticized the board for backing the deal without seeking higher bids or considering alternative growth strategies.
Industry analysts note that if the takeover fails, Ainsworth will continue operating as a publicly listed company, with Novomatic retaining its majority stake but without full operational control — a scenario that could slow or complicate its expansion plans.
