As the $500 million deal to sell Ainsworth Gaming Technology picks up steam it appears the man at the helm is backing shareholders into a corner, refusing to accept a full takeover...
May 11th 2016...
The Pokies are fine but the stake is a bit tough and shareholders are holding their chips wondering what this will mean for the company and their minority claims.
Morningstar analyst Ravi Reddy said there were a number of issues with the share sale, outlining that ideally there would have been an offer for all shareholders.
“Control is being passed with only Len Ainsworth receiving a control premium,” he said.
“He is not willing to accept other offers so takeover potential is diminished. We are also uncomfortable with Len Ainsworth’s family members, who we estimate to have about a 9 per cent stake, being allowed to vote.”
Mr Ainsworth wants to sell his 52.5 per cent stake in the company to Novomatic at $2.75-a-share. The company is holding a shareholder meeting on June 3 to vote on a resolution to approve the sale. Shares in the company were $2.46 today.
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