SkyCity Entertainment Group is continuing to explore a potential sale of the entire company after turning down two takeover bids last month.
The New Zealand-listed casino operator told shareholders that offers from US investment firm Oaktree Capital Management and Australian property developer Iris Capital undervalued the business, according to The Post as reported by Complete iGaming.
However, SkyCity has kept discussions with both groups open and is also seeking interest from other potential buyers.
SkyCity shares were trading at NZ$0.64 ($0.36) when the proposals were made. Oaktree offered NZ$0.70 ($0.39) per share in cash, putting the company’s value at NZ$772 million ($435 million). Iris Capital’s proposal implied a value of NZ$0.75 ($0.42) per share, or NZ$827m ($466 million).
The casino operator has hired UBS as its financial adviser and Chapman Tripp as its legal adviser to work with potential bidders. SkyCity said it is also “evaluating other opportunities,” but noted that there is no guarantee the review will lead to a deal or another outcome.
The potential sale comes as SkyCity carries out a broader restructuring programme. It has achieved NZ$30 million ($17 million) in cost reductions during the current financial year and plans to increase savings to NZ$70 million ($39 million) next year. The company has also reportedly eliminated more than 200 corporate positions.
Alongside the restructuring, SkyCity is preparing to enter New Zealand’s upcoming regulated online gaming market. The government is auctioning 15 licences, with the current process due to close on 14 October.
SkyCity’s online casino business is also facing legal action. A lawsuit filed in March names SkyCity, SkyCity Auckland Holdings, and Malta-based Silvereye Entertainment, the company operating its online casino platform.