Sharechat Logo

SkyCity wants at least A$200M for Darwin casino; private consortium most likely buyer: report

Friday 20th April 2018

Text too small?

SkyCity Entertainment Group wants to sell its Darwin casino business in Australia's Northern Territory for at least A$200 million, and hasn't yet attracted a buyer because the asking price is seen as "a little too high", according to a report in The Australian newspaper.

 

New Zealand's only listed casino company is looking to free up cash from its existing assets during a period of heavy investment and has appointed investment bank Goldman Sachs to test interest in its Darwin casino as it continues to evaluate strategic options for the business, including a full sale. Any funds from a sale would be used to repay debt in the short term, and fund strategic and growth initiatives.

 

SkyCity is "highly unlikely" to find another casino company to buy the business, the Australian newspaper said, citing sources it didn't identify. A more probable outcome is that a private consortium, which already holds interests in the Northern Territory, acquires the casino, the report said.

 

Australian casino operator The Star Entertainment Group and Malaysia's Genting Group aren't interested in buying Darwin casino, the newspaper said. It namechecked likely buyers including Darwin's Paspaley family, wealthy local entrepreneur John 'Foxy' Robinson, the Halikos family and the Coombes family. Information memorandums for the business were now circulating in the market, the newspaper said.

 

SkyCity bought the Darwin casino and hotel business from US-based MGM Mirage in 2004 for A$195 million ($230.6 million) including costs and taxes, as part of its Australian expansion following its purchase of Adelaide casino. In its latest financial year, the company wrote down its Darwin investment by A$95 million to A$195 million after it recognised the business had been hurt by increased rivalry from gaming machines in local pubs and clubs over the past two years.

 

The company's shares last traded at $3.93, and have slid 10 percent over the past year.

 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares up on A2 Milk rebound; Fletcher, Comvita drop
NZ dollar holds gains against greenback as markets fret about global trade
NZ's commercial drone operators mostly filming, aerial mapping, upbeat about outlook: survey
Resurgent Chinese visitors offset lethargic tourism sector
Oceania Dairy, Yili's NZ dairy processor, grows sales and losses supplying parent
Show us you’re clean: FMA, Reserve Bank send letter to life insurers
Metro Performance Glass says new strategy is about going back to basics
RBNZ needs to be 'far more aggressive' to shed gender imbalance, Orr says
Rosanne Meo looks for 20-year term as Briscoe Group chair
Metlifecare to add $180M Beachlands village as sector hunts greenfield sites

IRG See IRG research reports