SkyCity hoists for sale sign

Casino operator SkyCity Entertainment Group says it has opened its books to the firm that made a takeover approach a week ago and is also actively courting other potential suitors.
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SkyCity said this morning its board had clarified the approach revealed last Friday. It has agreed to let the party undertake commercial and financial due diligence on SkyCity which may result in a firm proposal to acquire the company. SkyCity said it would also consider approaches from other parties interested in buying or merging with it.

"The board plans to actively approach other parties to assess their potential interest in SkyCity."

SkyCity said its board considers these actions to be in the best interests of SkyCity and its shareholders.

It reiterated that the party that has made the approach has insisted on its identity remaining confidential.

However, the board advised it was a credible party making a genuine approach. It was still possible, though, that no transaction would materialise.

SkyCity said it would continue running a sales process for SkyCity Adelaide and that the sales process for SkyCity Cinemas was progressing and not expected to be impacted by the takeover approach for the group.

A sub-committee of SkyCity's directors including Rod McGeoch, Sir Dryden Spring and Patsy Ready will deal with the takeover approach.

A week ago SkyCity said it had received a confidential approach from a party interested in acquiring 100 per cent of its shares.

The party had indicated a potential cash offer price range, subject to conditions, which would represent a significant premium to SkyCity's then share price if an offer eventuated.

SkyCity shares jumped 25 cents to $5.30 after this morning's announcement.

- © Fairfax NZ News