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.
No comments yet
MARKET CLOSE: NZ shares dip as Fletcher gives up pursuit of Steel & Tube
NZ primary sector exports seen rising 2.5% to $43.8B in June 2019
NZ dollar inches above 65 US cents ahead of 3Q CPI data
Salt Funds to open up carbon trading to retail investors in NZX-listed fund
ComCom wants more transparency about Fonterra's processing capacity
Jenny Shipley says Mainzeal directors in
Self-regulation of vehicle inspection and licence failed, says NZTA chair Stiassny
Fletcher quits pursuit of Steel & Tube after failing to win over board
NZ service sector activity lifts in September but still below long-term average
Fulton Hogan heads off quarry quandry by leaving Huntly site