SkyCity has hired UBS to identify buyers for the group and manage the potential sale of its Adelaide casino
SkyCity Entertainment said Wednesday that it is continuing to explore options to enhance shareholder value, including selling the business.
The company’s board of directors said that despite making good progress on strategic initiatives, the current share price and previously disclosed acquisition offers do not fully reflect the underlying value of the group.
SkyCity has rejected two takeover offers this year, one from Oaktree Capital Management at a price of NZ$0.70 cash per share and another from an unnamed party at an implied indicative price of NZ$0.75 cash per share.
After gaining more than 5 per cent today, shares in SkyCity closed at NZ$0.68 per share.
Wednesday’s strategy update says that SkyCity has continued to engage with both parties and intends to continue those discussions while exploring other potential transactions for the group.
SkyCity’s directors have appointed UBS and chairman Matt Tripp to lead these efforts.
The casino operator has also received enquiries about its Adelaide business and plans to soon launch a formal sale process led by UBS.
Through its other strategic initiatives, SkyCity is aiming to bring in aggregate proceeds of NZ$275-$300 million this year through the sale of properties and revealed that it is in exclusive negotiations for the sale of The Grand Hotel, with a binding agreement expected shortly.
SkyCity also operates online in New Zealand and is among the applicants for New Zealand’s upcoming online gaming licences.
Shares in SkyCity Entertainment Group (NZE:SKC) gained 5.43 per cent on the news to close at NZ0.68 per share.