SkyCity rejects two conditional takeover proposals
SkyCity Entertainment Group said neither proposal adequately reflected the company’s underlying value.
New Zealand.- SkyCity Entertainment Group has confirmed that it rejected two conditional, non-binding takeover proposals received in May, including an offer from a special situations fund managed by Oaktree Capital Management. The New Zealand casino operator said the fund proposed to acquire all issued SkyCity shares for NZ$0.70 (US$0.42) per share, while a second, unidentified party submitted an indicative proposal at NZ$0.75 (US$0.45) per share.
Based on 1.103 billion shares outstanding, the proposals implied equity values of approximately NZ$772.1m (US$460.3m) and NZ$827.3m (US$493.1m), respectively. Both proposals were subject to a range of conditions, including at least eight weeks of due diligence and the arrangement of debt financing. They also required agreement on transaction structure, binding documentation, unanimous board support, shareholder and regulatory approvals, as well as internal approvals from the respective acquirers.
SkyCity said one or both parties also requested exclusivity, the retention of its existing debt facilities and restrictions on entering into binding agreements to acquire or dispose of assets, including transactions under its asset monetisation programme.
The SkyCity board unanimously determined that the proposals did not adequately reflect the underlying value of the company and that the conditions were problematic. It subsequently informed both parties that it was not prepared to proceed on the proposed terms.
However, SkyCity said it remained open to further engagement, including providing due diligence information, if either party submitted a revised proposal addressing the board’s concerns. Neither party subsequently made an improved offer.
The disclosure comes as SkyCity continues to pursue its strategic priorities outlined in its FY26 results announcement. These include an asset monetisation programme expected to generate NZ$275m to NZ$300m (US$164m to US$179m) in gross proceeds.
The programme includes the unconditional NZ$74.5m (US$44.4m) sale of the 99 Albert Street and Victoria Street investment properties, as well as a non-binding heads of agreement for the sale of the Grand Hotel. In addition, the company is conducting a strategic review of SkyCity Adelaide following a non-binding agreement reached with South Australian regulator CBS.
