At the start of September, SkyCity Entertainment Group announced it had completed the sale of its Auckland properties, in alignment with its ongoing asset monetization program.
Now, the group is getting ready to get in touch with potential buyers looking to acquire the entire business, while continuing its plans to expand into New Zealand’s regulated online casino market.
“In the Interests of Shareholders”
Speaking at the company’s annual general meeting in Auckland on Wednesday, October 21, Chairman Julian Cook said the board had decided to invite proposals through a structured process meant to assess the value of continued acquisition interest.
This will allow all interested parties to get access to relevant due diligence information to assist them with preparing their offers. SkyCity has appointed UBS as its investment banking adviser and Chapman Tripp as its legal adviser.
The move follows the rejection of two takeover bids earlier this year, when the company considered the offers did not properly reflect its underlying value.
Cook told shareholders that SkyCity had not received any improved proposals since rejecting those bids, nor any new non-binding offers for the entire business. However, the board remains aware of ongoing interest from potential buyers.
“In the interests of shareholders, the Board has decided to seek proposals through a structured process,” Cook said.
He added that the board remained confident in SkyCity’s existing strategy but would carefully assess any offer that could deliver greater value to shareholders.
Cook also cautioned that the process would be time-consuming and might not lead to a sale or any new offers.
SkyCity Targets Two Online Casino Licenses
Alongside the potential takeover process, chief executive officer Jason Walbridge outlined the company’s plans to enter New Zealand’s regulated online casino market.
SkyCity is preparing applications for two licenses after initially seeking the maximum of three permitted licenses. The company owns two of the 11 entities New Zealand’s Department of Internal Affairs recently approved to progress to the formal application stage.
Walbridge said the auction price fell within the scenarios SkyCity had modeled, giving the company confidence that it could generate an appropriate return on its investment.
He described the decision to pursue two licenses rather than three as a deliberate capital allocation choice intended to keep the investment within the company’s risk-adjusted return targets.
SkyCity expects its established casino brand and the ability to market its online services alongside its land-based operations to help it compete. The company has operated physical casinos in New Zealand for 30 years.
Walbridge also pointed to its experience with host responsibility and anti-money laundering requirements, which apply to both land-based and online gambling operations.
However, competition could be intense once the regulated market launches. SkyCity expects the market to go live in the second half of financial year 2027 and will closely monitor advertising activity.