SkyCity appoints UBS and Chapman Tripp for sale talks
UBS will lead a formal sale process for the company’s Adelaide casino, but the company is open to an outright takeover.
New Zealand.- SkyCity Entertainment Group has appointed UBS and Chapman Tripp to assess potential transactions after two takeover approaches received earlier this year failed to produce improved proposals. In a market announcement today, SkyCity said UBS will lead a formal sale process for the company’s Adelaide casino but that it’s also open to selling the entire business despite having rejected two prior proposals.
Regarding Adelaide, the company is seeking proposals from parties that have already expressed interest as well as other potential buyers. It said it had received enquiries from credible interested parties since announcing a strategic review of the Australian business on August 20. As for a possible sale of the entire group, the board said earlier non-binding proposals did not adequately reflect its underlying value and contained problematic conditions.
The operator is working towards regulatory certainty for its Adelaide business through negotiations with South Australia’s Consumer and Business Services.
The Adelaide review is part of SkyCity’s wider asset monetisation programme, which targets proceeds of between NZ$275m (US$155.3m) and NZ$300m (US$169.4m) before the end of 2026. The operator already completed the sale of commercial properties for NZ$74.5m (US$42.1m) and is in advanced, exclusive negotiations to sell The Grand Hotel. The company expects to reach a binding agreement for the hotel shortly.
At the same time, SkyCity is reducing costs through a group-wide restructuring. More than 200 corporate roles in New Zealand have been eliminated, while a second phase of the programme is focusing on external spending. The cost programme is targeting NZ$30m (US$16.9m) in benefits in FY2027, rising to NZ$70m (US$39.5m) in FY2028. SkyCity said progress has been better than expected.
The company is also pursuing a New Zealand online gambling licence, with the auction process scheduled to conclude on October 14. A further update on trading and progress on the strategic initiatives is expected at SkyCity’s annual shareholder meeting on October 21.
