Ainsworth Game Technology Contemplates Exit from Australian Stock Exchange
Date: 2023-11-15 Author: Dima Zakharov Categories: CASINO, EVENTS
Ainsworth Game Technology, a key player in the casino machine manufacturing sector, is considering a potential exit from the Australia Stock Exchange (ASX). The company made this revelation through an official filing to Australian authorities, indicating a strategic shift almost a year after resuming dividend payments to shareholders.
Reviewing Strategic Alternatives with Macquarie Capital
Ainsworth is currently in the initial stages of evaluating various opportunities, contemplating a return to private ownership. Macquarie Capital, a major business consultancy, will support Ainsworth in this review process, assisting the company in assessing its assets and considering available alternatives.
The company has emphasized its commitment to maximizing shareholder value throughout this process, which will explore both organic and inorganic options. Despite the exploration, Ainsworth has cautioned that there is no guarantee of a transaction occurring, and no offers from other companies have been received thus far.
Industry Challenges and Potential M&A Activity
The announcement comes at a challenging time for slot manufacturers, with many facing difficulties reflected in their stock performance. Analysts suggest that the industry may witness heightened merger and acquisition (M&A) activity soon, potentially revitalizing the slot machine stock landscape.
Given Ainsworth's significant presence in North America, there's speculation about acquisition offers, with Novomatic, one of the company's major shareholders, not ruled out as a potential acquirer. However, Ainsworth clarified that, as of the current announcement, no formal offer has been extended, and no agreement with a potential buyer has been reached.
The company concludes its announcement by reiterating its commitment to long-term growth through product strategy execution and sustained investments in research and development.
