The founder and executive chairman of gaming machine supplier Ainsworth Game Technology (AGT), Len Ainsworth, is set to sell his stake in the company.
The company announced on Tuesday that Mr Ainsworth, its major shareholder, had agreed to sell all of his stake in Ainsworth Game Technology to privately-owned gaming technology company Novomatic.
Based in Austria, Novomatic is one of the largest game technology companies in the world, with more than 18,000 employees.
Mr Ainsworth has agreed to sell his 172.1 million shares for $2.75 each.
Upon completion of the sale, Novomatic will hold a stake of about 53 per cent in Ainsworth.
The AGT board supports the sale, which is subject to shareholder approval.
Should the sale proceed, Novomatic will support AGT's continued listing on the Australian share market and its current board and management staying in place.
Len Ainsworth will remain as chairman.
"Novomatic has further indicated that it supports AGT's strategy to build a larger, diversified and more profitable international game technology company," AGT said.
"Novomatic plans to provide significant game development and other intellectual property to AGT and work with AGT on a global distribution and marketing strategy after completion."
Len Ainsworth said that with Novomatic's strength and support, the future of AGT was assured and its potential increased.
After the share market had closed on Tuesday, AGT also reported a four per cent fall in net profit for the six months ended December 31, 2015 of $33.1 million.
The result included currency-related gains of $6.9 million.
In the prior corresponding period, AGT's profit included $10 million of currency-related gains.
Excluding the currency gains, AGT's underlying profit was up seven per cent to $26.3 million.
For the full 2016 year, AGT expects a net profit, excluding currency gains, to be similar to the $52.5 million reported in 2015.
Len Ainsworth said domestic markets were challenging and competitive, but the company had a confident international outlook.
International revenues grew 57 per cent to $91.6 million and now represent 65 per cent of sales.
The company's strategy is to get bigger and more profitable in key markets in the Americas, which lifted sales by 52 per cent to $80 million.
AGT sold 20 per cent more units in North America, where profits increased by 40 per cent to $18 million.
AGT intends to open a new facility in Las Vegas in April to build its presence and profile in the US.
The market in Asia remained subdued, and AGT's Australian business reported a six per cent drop in revenue and a 33 per cent fall in profit.
NORTH AMERICA SALES BOOST AINSWORTH UNDERLYING PROFIT
* First-half net profit down 4pct to $33.1m, but underlying profit up 7pct to $26.3m
* Revenue up 27pct to $141.9m
* Interim dividend of five cents per share, fully franked, unchanged from prior corresponding period.
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