Ainsworth Game Technology, a leading Australian casino machine manufacturer, might exit the Australia Stock Exchange amid considerations of strategic alternatives. This announcement comes almost a year after the supplier restarted paying dividends to its shareholders.
As announced, the supplier is in the process of exploring opportunities and eyeing a return to being a private company. The news was revealed in a Monday filing to Australian authorities. During the process, the company will review its assets and consider the alternatives. Ainsworth stated that it will try to maximize shareholder value in the process.
The company’s review will be backed by Macquarie Capital, a major business consultancy. Macquarie Capital will assist Ainsworth with the review process which is still at an early stage.
In a statement, Ainsworth said that the review will go over a number of potential organic and inorganic alternatives. However, the company warned that it can provide no assurance that a transaction will take place and added that it is yet to receive offers from other companies.
In its announcement, Ainsworth concluded:
The company remains committed to driving sustained, long-term growth through delivering on our product strategy and continued investments in research and development.
Ainsworth Game Technology statement
No Deal Has Been Proposed as of Yet
Ainsworth’s announcement comes amid a bumpy period for slot manufacturers because of a number of factors. Other than a few big companies, many suppliers seem to be struggling as attested by the shape of their stock.
As a result, analysts believe that intense M&A activity could soon overtake the sector and potentially rekindle slot machine stock.
As a company with an extensive presence in North America, Ainsworth might receive an acquisition offer from a company interested in the region. Some have not ruled out the potential of a takeover by Novomatic, which is one of Ainsworth’s biggest shareholders.
However, as noted by Ainsworth, no offer has been extended to the company as of the time of this writing and no agreement with a potential buyer has been reached.