The Australian Securities & Investments Commission (ASIC), the country’s securities regulatory watchdog panel, is asking the Australian Takeovers Panel to review the pending shareholder vote on the takeover of a majority share in Ainsworth Game Technology by Austria’s Novomatic AG.
Gaming legend and AGT founder Len Ainsworth announced in February that he had entered into a sale agreement with Novomatic to sell his own majority share in the slot manufacturer, subject to shareholder approval. The supplier has scheduled a shareholder vote on the takeover for June 3.
Last week, ASIC sent a request to the Takeovers Panel to restrict Ainsworth’s wife Gretel, who is the company’s second-largest shareholder, from voting on the acquisition as a minority shareholder. The agency argues that Gretel Ainsworth should be viewed as an “associate” of the company founder and CEO, who would unfairly influence the takeover vote.
“ASIC submits (among other things) that Mr. and Mrs. Ainsworth have a relevant agreement or are acting in connection with the share sale transaction,” said the request, “and accordingly, Mrs. Ainsworth is an associate of Mr. Ainsworth and should be excluded from voting in favor of the share sale transaction.”
AGT lawyers were pondering their next move at press time.
