Ainsworth Game Technology’s share price climbed after two long-serving figures stepped down over reports of old personal payments, giving investors a governance drama with a slot-maker twist.
Board Shake-Up Sends Shares Higher
Ainsworth Game Technology shares rose 16.8% on Friday after the company confirmed that chairman Danny Gladstone and company secretary Mark Ludski had resigned with immediate effect, according to Gaming Intelligence and ASX market data. The ASX listed AGI at A$1.60, up 16.78% on the day.
The move came after recent media reports about personal payments made to both men more than eight years ago. Ainsworth said the pair believed their departures would help the company move past the complaints and refocus on running the business.
Old Payments Story Forces Fresh Exits
The payments story is the part that gives this one its bite. It was reported that founder Len Ainsworth paid AU$10m to Gladstone and AU$5m to Ludski after Novomatic took a majority stake in AGT in 2018, and that both executives confirmed receiving the payments during the company’s recent AGM.
The resignations were also tied to a wider dispute involving Kjerulf Ainsworth, Len Ainsworth’s son and the company’s second-largest shareholder, who has been openly critical of AGT’s governance and previous takeover efforts by Novomatic.
Campbell Takes The Chair
Graeme Campbell has been appointed as Ainsworth’s new chair. He has served as an independent non-executive director since 2007 and has more than 30 years of experience in corporate consultancy work focused on hotels and registered clubs.
Campbell has also joined AGT’s Regulatory and Compliance Committee, while Heather Scheibenstock has replaced Gladstone as chair of that committee. The company said it will begin looking for another independent non-executive director right away.
Mah And Kabega Fill Secretary Roles
Ainsworth CFO Lynn Mah has been appointed interim company secretary, while Andrew Kabega of BoardRoom Pty Ltd has been named interim joint company secretary. Kabega will be the main contact between AGT and the ASX under Listing Rule 12.6.
That gives Ainsworth a quick fix on the compliance side, which it badly needed. When a gaming supplier is already dealing with shareholder unrest, a public payments row, and regulator questions in the US, a tidy secretary handover is not glamorous, but it matters.
US License Update Eases One Headache
Ainsworth also addressed an inquiry into its US subsidiary by the Forest County Potawatomi Gaming Commission in Wisconsin. The company said the inquiry stemmed from allegations made by Kjerulf Ainsworth, but added that the commission found AGT US had complied with requests and had renewed its license on May 28, with the license remaining in good standing.
For operators using Ainsworth machines or content, that part is worth watching. Boardroom mess can become operational pain if licenses wobble. For now, Ainsworth is telling the market that its US regulatory footing has held.
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