Novomatic puts float plans on hold

Gaming supplier Novomatic says it has halted its plans for an initial public offering over regulatory uncertainty in Germany, one of its most important markets, Reuters reports.

The Austrian firm was expected to publish its intention to float on the Frankfurt stock exchange, but said it has given up plans for a 2017 listing. It did not list specific reasons why.

The new rules in Germany state that gambling halls need to be 100-500 meters apart from each other, and each license can hold up to 12 gambling machines.

“The implementation of the new German regulation is filtering through more slowly than expected and it is difficult for investors to fully assess the effect on Novomatic’s business,” said a source quoted by Reuters.

As well as this, Novomatic’s acquisition of Ainsworth, which is expected to contribute around US$59 million in annual core earnings, has not yet completed, the source added.

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