Len Ainsworth's family ties let pokies king collect $500m jackpot
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Poker magnate Len Ainsworth has been told his wife and family members will be treated as minority shareholders in Ainsworth Game Technology. Dominic Lorrimer
Poker magnate Len Ainsworth has been advised his wife and family members will be treated as minority shareholders in Ainsworth Game Technology, paving the way for them to help vote through the controversial sale of his majority stake to Austria's Novomatic for nearly $500 million.
With Novomatic executive Robert Dijkstra due to land in Australia on Wednesday to help sell the buyout deal, a strategy committee set up by AGT's independent directors met on Monday.
Sources close to the company said the committee discussed the deal including whether Gretel Ainsworth,
Mr Ainsworth's wife, and any of his children are able to vote their shares as minorities in an extraordinary general meeting scheduled for June 3.
While the independent directors led by Graeme Campbell have yet to make a call either way on the contentious issue, Mr Ainsworth told Fairfax Media he expected his family would be able to vote their almost 10 per cent stake at the EGM.
"Our company secretary has checked the legalities and says they will be able to vote their shares and will be treated as minorities," Mr Ainsworth said. "I am not involved in the process and they are more than capable of making their own mind up."
Novomatic
has proposed to buy Mr Ainsworth's 53 per cent stake in AGT for $473 million at a price of $2.75 a share. While the board has recommended the deal, it will only proceed if more than 50 per cent of the votes cast by minorities are in favour.
The Austrian gaming giant has been virtually silent on the deal since it was announced on February 23.
Charm offensive
However, the arrival in Australia of Mr Dijkstra, Ainsworth's former British boss
who was poached by Novomatic, is likely to begin a charm offensive with investors eager to engage with management about the deal.
Mr Ainsworth, who is 92, confirmed he had held talks with several brokers including Canaccord Genuity in recent days to explain his vision for the tie-up and how it would safeguard the future of the pokies maker that he created.
Novomatic chief executive Harald Neumann will attend the EGM in June and may also visit Australia in coming weeks as it works to secure the deal.
Minority investors have flagged their intention to oppose the transaction as they agitate for a full sales process for the company.
Mr Campbell admitted in March the deal had received a mixed reception from shareholders with
some arguing the sale should protect their interests by offering the same $2.75 a share price handed to Mr Ainsworth.
One top-10 investor has said the company
could borrow funds allowing it to offer to buy out all minority investors, and still keep gearing in line with other gaming groups including Aristocrat Leisure.
PwC is expected this week to finalise an independent expert report, which will consider whether the transaction is fair value.
While Novomatic will be handed a sizeable footprint on the pokies market if the sale is approved, sources said it could be up to 12 months before the Austrian company received probity clearances from US gaming regulators where Ainsworth already operates.
Novomatic's owner Johan Graf is Austria's fourth richest man and has been dubbed "God of the Slot Machines" by his staff owing to his success in conquering large swaths of Europe with a mixture of pokies, casinos and lottery terminals.
