Sky City cinemas sold

Last updated 14:06 24/11/2009
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Sky City Entertainment Ltd has sold its cinema operations to Australia's Amalgamated Holdings.

It said it had sold the core cinema chain, including its interests in the Rialto group and its joint venture interests in Fiji for $59 million.

However, the deal excludes Sky City's 50 percent stake in a ticketing operation and all freehold and long term leasehold land and buildings.

The deal is expected to be completed on February 15.

It is conditional on due diligence by AHL and regulatory approvals.

Chief executive Nigel Morrison said the company was divesting a non core business

Shares in Sky City, which has a virtual monopoly in casinos in New Zealand and two establishments in Australia, last traded up 1.2 percent to $3.35.

Amalgamated shares last traded up 2.6 percent to A$5.55 on the ASX.

-with NZPA

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- Reuters

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