February 16, 2005

By HEATH ASTON
the Daily Telegraph

NOT one to sit still, 81-year-old Sydney pokie baron Len Ainsworth wants to sell his business to Russian casino magnate Boris Belotserkovsky.

Mr Belotserkovsky's Unicum Group -- of which he is sole owner -- is the biggest casino and gaming supplier in the former Soviet Union.

Ainsworth Game Technology has sold 300-400 poker machines a month into the fast-growing Russian market through Unicum since 2003.

If the proposed deal proceeds, a merged Ainsworth will increase its market capitalisation by three-fold and, according to Mr Ainsworth, be a $1 billion business within three years.

Mr Belotserkovsky will become president of the Western Sydney-based company, though it will remain listed in Australia, and Mr Ainsworth would continue as chairman with a diluted share base.

"Boris is a friend, I've known him for about 20 years," Mr Ainsworth told The Daily Telegraph last night.

"We've been doing very nicely over there; he's been doing a very good job."

Subject to due diligence and regulatory, government and shareholder approvals, the merger will take place within months.

News of the merger came as Ainsworth yesterday posted a $1.83 million half-year net loss.

The market took the late breaking news well yesterday, pushing Ainsworth shares 9c higher to a three-month high of $1.18.