Rumors have been swirling around Ainsworth Game Technology, a well-known gaming manufacturer based in Australia, and the company has now officially confirmed them. The company has announced that it will be delisted from the Australia Stock Exchange (ASX) and will undergo privatization. To assist with the process and explore potential opportunities, Ainsworth has selected Macquarie Capital as its financial advisor.
Despite the ongoing process, no formal expressions of interest have been received by the company. Ainsworth’s financial performance in the first half of the year was not as successful as hoped, with a 30% decrease in revenue compared to the previous year. The company attributes part of this decline to investments made in Argentina, which impacted profits. As a result, Ainsworth is now seeking to review and assess strategic alternatives to maximize shareholder value.
Ainsworth has expressed its commitment to driving sustained, long-term growth through continued investments in research and development. The company is exploring a wide range of potential alternatives, both organic and inorganic, to achieve its goals. However, it is important to note that no final decisions have been made, and there is no guarantee that any transactions will result from these efforts.
According to reports from the Australian Financial Review, Novomatic, a well-known gaming company, is a potential buyer for Ainsworth. This is not surprising, as Novomatic already owns a majority stake in Ainsworth, having acquired more than 50% of the company from founder Len Ainsworth in 2016 for almost AU$500 million. Len Ainsworth is also the founder of Aristocrat, another prominent gaming company.
The potential privatization of Ainsworth Game Technology represents a significant development in the gaming industry, and the company’s decision to explore strategic alternatives underscores its commitment to maximizing shareholder value. As the process unfolds, stakeholders will be watching closely to see what the future holds for this renowned Australian gaming manufacturer.