SkyCity invites takeover proposals via structured process while preparing two NZ online casino licence bids

SkyCity Entertainment Group has decided to invite proposals for the acquisition of the whole company through a structured process, Chairman Julian Cook told shareholders at the annual general meeting in Auckland on Wednesday, October 21.

The process is intended to assess the value of continued acquisition interest. Interested parties will be given access to due diligence information to help them prepare offers. SkyCity has appointed UBS as its investment banking adviser and Chapman Tripp as its legal adviser.

The move follows the board's rejection of two takeover bids earlier this year, which it judged did not reflect the company's underlying value. Cook said SkyCity has received no improved proposals since then, and no new non-binding offers for the entire business, although the board is aware of continuing interest from potential buyers. He said the board remains confident in the existing strategy but will carefully consider any offer that could deliver greater value. He also cautioned that the process would be time-consuming and might not result in a sale or any new offers.

The meeting also covered the company's plans for New Zealand's regulated online casino market. Chief executive officer Jason Walbridge said SkyCity is preparing applications for two licences, after initially seeking the maximum of three that will be permitted. The company holds two of the 11 entities that the Department of Internal Affairs recently approved to move to the formal application stage.

Walbridge said the auction price fell within the scenarios SkyCity had modelled, giving it confidence of earning an appropriate return. He described the choice to pursue two licences rather than three as a deliberate capital allocation decision to keep the investment within risk-adjusted return targets.

SkyCity expects its established casino brand, and the ability to market online services alongside its land-based operations, to help it compete. The company has run physical casinos in New Zealand for 30 years, and Walbridge pointed to its experience with host responsibility and anti-money laundering obligations, which apply to both land-based and online gambling.

Competition is expected to be intense once the regulated market opens. SkyCity expects launch in the second half of financial year 2027 and says it will closely monitor advertising activity.

The company earlier completed the sale of its Auckland properties at the start of September, as part of its ongoing asset monetisation programme.