"If the transaction for the sale of Mr Ainsworth’s shares in AGT...

"If the transaction for the sale of Mr Ainsworth’s shares in AGT completes, Mr Ainsworth and Votraint’s
combined holding in AGT will be 10.15%. This could represent a blocking stake for the purposes of
Chapter 6A of the Corporations Act 2001 meaning that the likelihood of a takeover may be reduced"

I didn't take it this way.. Currently Len/Wife have 62.79% so they can block any take over..


To me it reads if the deal with Novamatic proceeds, Len and his wife are left with 10.15%... So Novomatic has 52.74% len /wife 10.15% and Balance 37.11%...


For a takeover to occur acquirer must have >= 90% of issued shares..

So if the transaction proceeds Len is protecting the possibility that a takeover proposal is offered and accepted by Novamatic/Minorities as he has enough to block...

Now from here I must admit I have zero experience... Could the acquiring company ( after take over proposal) buy all Novomatic/minorities shares on market at premium price which gives them special resolution privileges (>=75%) and pretty much do what they want??

In essence if the transaction between Len and Novomatic proceeds there is still a possibility of a takeover to occur... it would need :

1. Acquirer to be interested knowing that he will not have an automatic takeover stake and will need to resort to special resolutions to meet their objectives
2. Novomatic to accept
3. 23% of minorities to accept

It just makes it less appealing target... however it becomes a target... currently not a target except for Novamatic

It seems Len has planned this carefully... Firstly having a controlling stake in AGT to interest a block sale and at the same time leaving enough on the table should Novomatic change their direction and accept take over proposal along with minorities ... Now is it enough to deter take over proposals?? This will be based on the legalities ...

My personal view is that Novamatic is not interested letting AGT go... It would take a ridiculous offer and that event is unlikely considering Lens blocking stake.

At least now we have a fair vote on Novamatic/Len transaction... Interesting the share price did not react on the news Lens wife cannot vote... Most likely its because the scenarios that can eventuate make it a hard one to evaluate... on one hand Novomatic proposes the best high growth opportunity should the intentions of Novamatic be as stated on the other the risk is that their intentions are of self interest and rules out the possibility of Novomatic resorting to a takeover offer. If no transaction occurs AGT will take a longer time to become a major force... they are limited in resources and scalability..

No voters would be betting on Novomatic making a takeover offer ... otherwise in my opinion risk/reward favors transaction as I do believe their intentions are good providing benefits for both. They have made agreements that provide commercial benefits and the sharing of resources and jurisdiction provide significant opportunities... No voters would not want AGT moving forward as it is... Its current state is not great, and will take time to develop... in addition the chances of a takeover are non existent.


For the record I have voted Yes as I believe Novamatic will provide AGT the benefits of a major player.. Once the market sees this the share price will allot more than any take over offer...

However I do think a majority No vote will force Novomatics hand to a take over offer as they will see a win win situation ... So either way I'm not phased...