US-based Delaware North has agreed to acquire SkyCity’s Darwin casino as the Australian operator focuses on other markets.
Australia.- Australian operator SkyCity Entertainment has agreed on a €119 million deal to sell its Darwin casino to US-based Delaware North. The company has decided to get rid of its Northen Territory property in order to focus on the Auckland and Adelaide markets.
“There are a number of strategic initiatives being pursued that the company expects would generate returns above its cost of capital,” SkyCity said about the proceeds from the deal, which has a price €5 million higher than the book value of the asset. The company also explained it “remains committed to efficient capital allocation across its businesses going forward.”
The Australian company had put the Darwin casino on the market earlier this year after writing €60.2 million off its value in the 2017 financial year. It had operated the venue since 2004 when it acquired it from MGM Mirage for €128 million.
In addition to agreeing on the casino sale, Delaware North and SkyCity plan to establish an online casino business in the Northern Territory through a joint venture. “We see both international business and the online space as future growth areas for us, so we see value in this outcome,’’ SkyCity chief executive Graeme Stephens said.