Packer looks at Sky City takeover

By Nick Stride

Friday 19th April 2002

KERRY PACKER: Kiwi punt?

Australian media magnate Kerry Packer is believed to be considering a takeover bid for hotel and casino operator Sky City.

Sources close to Mr Packer's Publishing and Broadcasting said PBL's interest in Sky City was part of a renewed focus on New Zealand in recent months.

PBL's Nine Network Australia television arm has an option to buy 50% of Prime New Zealand as part of a partnership agreement, signed last year, with Prime's Australian parent.

Prime NZ now carries Nine Network programming.

In December PBL's magazine publishing arm, ACP Media, bought the classified advertising stable of Liberty Press Group.

PBL's entertainment arm owns Melbourne's Crown complex which houses the Crown Casino, hotels, restaurants and retail space.

PBL and Sky City are potential bidders for Western Australian resort casino operator Burswood if the Western Australian government removes the 10% shareholding cap.

Sky City has an open share register. Fund manager Colonial First State, with 18.6%, is the only substantial holder.

Since listing in 1996 it has delivered steady growth in revenues and profits. Last year it posted earnings before interest, tax, depreciation, and amortisation of $192 million on revenue of $435 million.

At current prices its 100 million shares and 150 million capital notes are worth around $760 million.

Mr Packer likes casinos and is himself a legendary gambler.

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