Ainsworth shares surge on Novomatic takeover bid
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More news: Ainsworth shares rocketed after gaming technologies producer Novomatic agreed to buy the remaining 47.1% stake the poker machine manufacturer.
Ainsworth shares were up 32.4% to 98 cents at 1pm AEST, taking it close to Novomatic's $1-per-share valuation.
Novomatic agrees buyout of pokies maker Ainsworth Game Technology
The news: Gaming technologies producer Novomatic has agreed to buy the remaining 47.1% stake in ASX-listed poker machine manufacturer Ainsworth in a deal that values the company at $337 million.
The numbers: Austria-based Novomatic — which currently holds a 52.9% interest in Ainsworth — will pay $1 per Ainsworth share, representing a 35% premium to the company's last closing price of 74 cents.
The context: Ainsworth's independent board committee (IBC) has unanimously recommended that the company's shareholders vote in favour of the scheme of arrangement, which is subject to customary conditions.
Novomatic has said its offer is "best and final and will not be increased", although Ainsworth is permitted to pay a dividend which will be deducted from the cash consideration.
What they said: "The proposal put forward by Novomatic, who is already the majority shareholder of [Ainsworth], represents a significant premium to long term trading value and is compelling for [Ainsworth] minority shareholders," said Ainsworth chairman Daniel Gladstone.
"The IBC have carefully evaluated the proposed scheme consideration against the company's medium- and long-term growth prospects and alternative opportunities, and has unanimously formed the view that the proposal represents attractive and certain value for [Ainsworth] minority shareholders."
The source: ASX
