SkyCity Opens Door to Takeover Bids After Rejecting Two Offers
SkyCity Entertainment Group is inviting potential buyers to submit takeover proposals after previously turning down two unsolicited offers for the business.
The company announced the move at its annual shareholders’ meeting on October 21. The earlier proposals, reportedly valued at approximately NZ$772 million and NZ$827 million, were rejected because the board believed they did not adequately reflect SkyCity’s underlying value.
The company has appointed UBS as its investment banking adviser and Chapman Tripp as its legal adviser. Interested parties will be able to access certain due diligence information as part of the structured review process.
The takeover review comes as SkyCity works to strengthen its financial position. The operator is selling assets, reducing debt, and implementing cost-cutting measures while assessing opportunities to improve shareholder returns.
SkyCity is also preparing to enter New Zealand’s regulated online casino market. It has secured the right to apply for two online gambling licences, which could provide a new source of revenue as the market develops.
The board has stressed that the review does not guarantee a sale. Any proposal will be assessed against the potential value of the company’s existing strategy, and SkyCity says it remains focused on improving its operations while considering offers that could deliver greater value to shareholders.
