Ainsworth confirms Macquarie review, could take itself private

Pokies supplier Ainsworth Game Technology will consider whether to take itself private for its next stage of growth as part of a strategic review of the business designed to maximise value for shareholders.

Shares in the ASX-listed gaming company climbed more than 13 per cent on Monday as it confirmed a report in The Australian Financial Review’s Street Talk column that it had hired Macquarie Capital to review its strategic options. In a statement on the ASX, Ainsworth said it had received no expressions of interest and that the review did not guarantee a transaction.

“The process will look to review and assess all strategic alternatives which could assist the company in maximising shareholder value,” the company said in the statement. “The strategic review will include a broad range of potential organic and inorganic alternatives, and there can be no assurance that any transaction will result.”

Ainsworth reported revenue of $143.6 million in the six months to June 30, a 20 per cent increase on the prior corresponding period. Profit before tax rose 24 per cent to $23.3 million, although write-offs of investments in Argentina affected the post-tax bottom line.

Harald Neumann, chief executive of Ainsworth, said in September the company’s main priority was improving cash flow and the balance sheet. Operating cash flow improved by $17.4 million from a $5.3 million deficit in the half-year ending December 31, while net cash was $24.6 million.