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Highlights:

  • Ainsworth Game Technology shares jumped 34% after agreeing to a takeover deal with Novomatic AG.

  • Shareholders are set to receive $1.00 cash per share, representing a 35% premium over last week's close.

  • The deal remains subject to shareholder, regulatory, and court approvals, but Novomatic has already secured FIRB clearance.

Ainsworth Game Technology Ltd (ASX:AGI) shares are off to a flying start this week, surging 34% to 99 cents in morning trade. This sharp rise significantly outpaces the broader market, with the ASX 200 index up just 0.95% at the time of writing.

Takeover Announcement

Investor enthusiasm was ignited after Ainsworth Game Technology announced it has entered into a Scheme Implementation Deed (SID) with gaming giant Novomatic AG. Under the agreement, Novomatic will acquire all outstanding shares in Ainsworth that it does not already own.

Novomatic currently holds a 52.9% stake in Ainsworth. If the scheme proceeds as planned, remaining shareholders will receive $1.00 in cash per share, adjusted for any permitted dividends paid prior to the transaction closing. The offer implies an equity value of $336.8 million and an enterprise value of $336.5 million, representing approximately 7x the forecast FY2024 EBITDA.

Importantly, the offer represents a 35% premium compared to Ainsworth’s closing share price last week, providing an attractive exit opportunity for shareholders.

Conditions Still to Be Met

While the agreement is a major milestone, the deal is not yet final. Several conditions must still be satisfied, including:

  • Regulatory approvals from the Australian Securities and Investments Commission (ASIC) and the ASX.

  • Approval by the requisite majorities of AGI shareholders.

  • Federal Court of Australia approval.

  • An independent expert confirming the scheme is in the best interests of shareholders.

Ainsworth also confirmed that Novomatic has already secured approval from the Australian Foreign Investment Review Board (FIRB) for the transaction. Moreover, Novomatic intends to fund the acquisition through a mix of existing cash reserves and third-party debt financing, and has stated that it does not require any due diligence to complete the acquisition.