The industry is consolidating... AGT has fallen behind...

The industry is consolidating... AGT has fallen behind recently... bigger players have advantages ... As I said numerous times Len stake was always a concern due to his age and controlling %. Len has the right to do what he likes with it within the law.. As we do with our assets... to take it out on Len is poor.. The information was always there and investors get to vote...

I suggest you do sums on the initial heads of agreement items ... also allow for cost savings on components...For AGT they are significant.. Yes the orders for Novamatic maybe minor to them due to their size, however it is the effect on AGT the only matters ... do the maths ..

AGT yearly volume sale 11,000
Novomatic to purchase 1,000 units...
9% jump in volume

This is the easiest part of the agreement to extrapolate in monetary terms... There is also the right to sell their products in certain markets. As you pointed out Novomatic is large entity turning over $3B a year this provides AGT with better pricing for components they have in common...

Of course there will also be benefits to Novomatic as well.. They operate in different markets hence it opens up opportunities.

Eg. AGT is losing market share in AUS... Novomatic product may be a way of winning back share...


The only negative of this whole case is that investors did not receive a take over offer and Len is limiting the possibility of this happening... Again I state it was a risk well known...