Ainsworth Game Technology is Conducting a Strategic Review with the Goal of Maximizing Shareholder Value

November 14, 2023 | Gaming Machines

The company could be seeking a private buyer, according to reports.

SYDNEY, NSW. (November 13, 2023) — According to local media reports it seems that Ainsworth Game Technology (AGT) is undergoing a strategic review to explore options for maximizing shareholder value. The possibility of a takeover by a private company, particularly the Austrian gaming group Novomatic, has led to a significant surge in Ainsworth’s share price.

Key points:

  1. Strategic Review: Ainsworth is conducting a strategic review with the goal of maximizing shareholder value. This could involve various options, including a potential sale of the company.
  2. Potential Buyer: Novomatic, an Austrian gaming group operating under the Admiral Casino brand and owning just over 50% of Ainsworth, is reported to be a top contender as a potential buyer.
  3. Leadership Connection: Ainsworth’s CEO, Harald Neumann, was an executive at Novomatic before taking on his current role at Ainsworth, adding an interesting dimension to the potential acquisition.
  4. Financial Advisor: Ainsworth has appointed Macquarie Capital as its financial advisor for the strategic review. The process is in the early stages, and no expressions of interest have been received at the time of the announcement.
  5. Commitment to Growth: Ainsworth emphasized its commitment to driving sustained, long-term growth through product strategy and continued investments in research and development (R&D).
  6. Market Capitalization: The company’s current market capitalization is $395 million.
  7. Share Price Movement: The news of the strategic review and potential takeover has led to a significant increase in Ainsworth’s share price, closing 12.9% higher at $1.18.

It’s important to note that the strategic review is still in the early stages, and there is no guarantee that a transaction will occur. The outcome will depend on various factors, including expressions of interest from potential buyers and the company’s evaluation of strategic alternatives. Investors and stakeholders will likely be closely monitoring further developments in this process.

SOURCE: LI Contributor.

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