SkyCity Entertainment Group will shortly launch a formal sale process for its Adelaide casino business after receiving inquiries from potential buyers, moving beyond the strategic review announced in August.
In a September 30th filing, the casino operator said UBS would lead the process to seek proposals from existing interested parties and other potential bidders.
‘SkyCity has received inquiries from credible interested parties in that asset,’ the company stated.
SkyCity said negotiations were also well advanced on a binding agreement with South Australia’s Consumer and Business Services to resolve outstanding regulatory matters arising from the independent review of its Adelaide operations.
Separately, the board is starting a structured process to assess potential transactions involving the wider group and other opportunities to enhance shareholder value. UBS and Chapman Tripp have been appointed to assist.
SkyCity continues to engage with the two parties whose unsolicited takeover approaches it disclosed on August 25th, although neither has submitted a further proposal. The board previously rejected their terms, citing inadequate value and problematic conditions.
‘There is no certainty that this process will result in any transaction or other outcome,’ the filing cautioned.
Meanwhile, SkyCity has cut more than 200 corporate roles in New Zealand and is shifting its cost-reduction program toward external spending. It remains on track for NZ$30 million ($17 million) in FY27 cost savings.
The company is also in advanced, exclusive negotiations to sell The Grand Hotel, with a binding agreement expected shortly.
Underlying first-quarter results were in line with its previous outlook, while cost savings progressed better than expected. SkyCity will provide a further trading update at its October 21st annual shareholders’ meeting.
