Another gaming supplier will go private, as Novomatic intends to purchase the remaining 47.1 per cent stake of Australian-listed Ainsworth it doesn’t currently own.
Novomatic will pay AU$1 per Ainsworth share, which is a 35 percent premium to the stock’s closing price Friday.
The agreement implies an enterprise value of $336.5m, representing seven times enterprise value-to-EBITDA.
An additional dividend could be paid by Ainsworth to shareholders from the cash consideration from Novomatic’s acquisition, the press release said.
Ainsworth’s board is recommending shareholders vote in favor of the deal, with Chairman Danny Gladstone saying it represents a significant premium to long term trading value and is the most attractive and certain value for shareholders in the medium-to-long term.
Information on the acquisition will be sent to Ainsworth shareholders in July with a vote on the proposal to take place after, though an exact date has not been set.
The acquisition by Novomatic, which already owns 52.9 per cent of Ainsworth, is not conditional on any regulatory approvals or on Novomatic obtaining financing.
Macquarie Capital is the exclusive financial advisor to Ainsworth on the proposal.
Source: Fantini's Gaming Report
