Ainsworth Game Technology, a well-known gaming manufacturer from Australia, has recently confirmed rumors about its potential privatization. The company has announced that it will be delisted from the Australia Stock Exchange (ASX) and will be privatized. To assist with this process, Ainsworth has appointed Macquarie Capital as its financial advisor.
The announcement comes after a challenging first half of the year for Ainsworth. In the six months leading up to June 30th, the company earned AU$143.6 million in revenue, with shareholders receiving AU$4.1 million. This marks a nearly 30% decrease in comparison to the previous year’s earnings. The impact of investments made in Argentina has subdued profits, prompting the company to explore strategic alternatives to increase shareholder value.
In a statement released on Monday, Ainsworth expressed its commitment to driving sustained, long-term growth through product strategy and continued investments in research and development. The company emphasized the review and assessment of potential organic and inorganic alternatives to maximize shareholder value, although no definitive decisions have been made at this time.
According to reports from the Australian Financial Review, Novomatic is a potential buyer for Ainsworth. Novomatic already owns more than 50% of the company, having purchased it from founder Len Ainsworth in 2016 for almost AU$500 million. The potential interest from Novomatic adds another layer of complexity to Ainsworth’s future as it navigates the process of privatization and explores optimal solutions for enhancing shareholder value.