Ainsworth Game Technology has recommended that shareholders accept a proportional takeover offer from Kjerulf David Hastings Ainsworth, according to a Target’s Statement lodged on April 10th.
The company’s independent board committee said it unanimously recommends accepting the AU$1.30 ($0.89) per share offer for 5.5 percent of each shareholder’s holdings, describing the price as an ‘acceptable premium’ in the absence of a superior proposal.
The offer represents a premium of 23.8 percent to Ainsworth’s closing price prior to the bid announcement and 23.6 percent to its one-month volume-weighted average price, providing shareholders with a cash option for part of their investment without exposure to market fluctuations.
The recommendation follows the launch of Kjerulf Ainsworth’s proportional takeover bid for 5.5 percent of shares, which opened for acceptance in late March and is scheduled to close on April 27th at 7:00pm Sydney time, unless extended or withdrawn. The offer applies only to a portion of each shareholder’s stake, allowing investors to retain the majority of their holdings.
Ainsworth noted that accepting the offer would increase Kjerulf Ainsworth’s voting power, with the bidder currently holding approximately 8.24 percent of shares. Meanwhile, Novomatic AG remains the controlling shareholder with a stake of about 67 percent.
The board also highlighted that shareholders should consider potential alternatives and their own financial circumstances, advising them to review both the bidder’s and target’s statements before making a decision.
The move builds on an earlier proportional offer completed in January, under which Kjerulf Ainsworth sought to acquire up to 2.9 percent of shares he did not already own, as part of ongoing efforts by the Ainsworth family to increase its stake amid takeover interest from Novomatic AG. Kjerulf Ainsworth, the sixth son of company founder Len Ainsworth, does not hold an executive role but has long been a significant shareholder.
