SkyCity seeks proposals through structured review
SkyCity Entertainment Group is establishing a structured process to consider proposals for acquiring the business, following continued interest from potential buyers. Chair Julian Cook outlined the process at the company’s October 21 annual shareholders’ meeting in Auckland.
Interested parties will receive access to selected due diligence information to help develop proposals. UBS and Chapman Tripp have been appointed as investment banking and legal advisers, respectively, and a Structured Review subcommittee will oversee the process.
SkyCity previously rejected two unsolicited, non-binding, conditional proposals that its board considered opportunistic and below the company’s underlying value. Cook said no improved proposals or new whole-business approaches had subsequently been received, although the board remained aware of continued interest.
The group is also pursuing online casino licenses and a separate Adelaide sale.
SkyCity has secured the right to apply for two New Zealand online casino licenses at NZ$15 million each. Chief Executive Jason Walbridge said the decision to pursue two rather than the maximum three licenses reflected the company’s capital-allocation criteria. Applications are being prepared; participation in the auction does not itself constitute final licensing approval.
Separately, the company has begun a formal sale process for SkyCity Adelaide. That follows a non-binding agreement with South Australia’s Minister of Consumer and Business Affairs addressing outstanding regulatory matters, including an A$21 million fine and governance and operating requirements.
The board said it would assess any acquisition proposal against the value offered by SkyCity’s existing strategy. Neither the group review nor the Adelaide process is guaranteed to produce a transaction, and the company will disclose material developments as required.
