TLDR
- SkyCity Entertainment Group will start a formal sale process for its SkyCity Adelaide casino resort.
- The move follows inquiries from parties the company describes as credible.
- No timetable, buyer names or property value were disclosed.
- SkyCity rejected two takeover approaches in August but is still in talks with both parties.
- The company sold Auckland properties for NZ$74.5 million and expects a binding deal for The Grand Hotel soon.
SkyCity Entertainment Group will begin a formal sale process for its SkyCity Adelaide casino resort. The New Zealand-based company made the announcement in a filing on Wednesday morning.
The company said it received inquiries from parties it considers credible. The process will seek proposals from those parties as well as other potential buyers.
The sale process follows SkyCity’s recent decision to carry out a strategic review of the Adelaide business. That review has now moved into a formal stage designed to gather and assess offers.
Adelaide Sale Process Details
SkyCity did not name the parties that made inquiries about the Adelaide resort. It also did not say how many groups have shown interest.
The company gave no timetable for the process. It did not say when a preferred buyer might be chosen.
SkyCity also did not provide a value for the Adelaide property. It did not state whether it expects to reach a sale agreement.
The company said its wider review covers the Adelaide resort, its ownership structure and its asset base. The goal, according to SkyCity, is to maximize value for shareholders.
Earlier Takeover Approaches
In August, SkyCity said it had received unsolicited acquisition approaches from two parties. Both related to a possible purchase of the entire group, and the company rejected them.
SkyCity has continued discussions with both parties despite turning down their offers. It plans to keep engaging with them while it looks at other options.
The board said it believes the current share price and the earlier proposals do not fully reflect the group’s underlying value. It added that the non-binding indicative proposals had not led to improved offers.
SkyCity did not identify the two parties behind the earlier approaches. It also did not say whether either has shown interest in the Adelaide resort.
The company said it will assess a range of potential options through a structured process. This includes talks with interested parties while it pursues its current strategic plans.
SkyCity recently completed the sale of commercial properties in Auckland. The deals brought in a combined NZ$74.5 million, or about US$42 million.
The company is also in advanced and exclusive talks to sell The Grand Hotel. SkyCity said it expects a binding agreement shortly but did not disclose the expected value.
At the same time, SkyCity is running a cost-cutting program and a group-wide reset of its operating model. The program targets total benefits of NZ$30 million, or US$17 million, in FY27.
Those benefits are expected to rise to NZ$70 million, or US$39.5 million, in FY28. SkyCity said the program is part of its wider strategic work.
SkyCity will now seek proposals for the Adelaide casino resort. It will also continue talks with the two parties that approached the group earlier this year.
