SkyCity takeover gamble rejected

Wednesday 10th November 2010

SkyCity has confirmed it made a takeover bid for the 50% of Christchurch Casino is does not already own.

In a statement to the stock exchange the company said it was aware of discussion over whether it had offered to acquire the remaining stake from Queenstown company Skyline Enterprises.

"SkyCity wishes to confirm that it has advised Skyline Enterprises of a cash offer that it is willing to make for its interest in Christchurch Casino," the company said.

"The board of Skyline Enterprises has rejected SkyCity's approach."

Reports on Monday claimed an offer of between $100-$110 million was on the table.

Skyline chairman Ken Matthews said the board would consider a formal offer, but indicated Skyline was a long-term investor in Christchurch Casions.

"It's very difficult to find investments in this country of a tourism nature that are of scale,"Matthews said.

"Why would we contemplate selling something that's of scale?"

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