New Zealand operator SkyCity has launched a formal sale process for its Adelaide casino after receiving inquiries from potential buyers. UBS will advise on the transaction, according to documents dated 30 September. The company said credible parties had expressed interest.
SkyCity is close to finalising an agreement with South Australia's regulator to resolve issues raised by an independent audit of the Adelaide property. The board has also initiated a review of possible group-level transactions aimed at lifting shareholder value, with UBS and Chapman Tripp assisting.
The operator continues discussions with two parties whose takeover proposals it disclosed on 25 August, but no new offers have been received. The board rejected the initial terms, citing low valuation and unacceptable conditions.
SkyCity has cut more than 200 corporate roles in New Zealand and shifted its cost programme toward external spending. The target is NZ$30 million ($17 million) in savings by the 2027 financial year. Exclusive negotiations for the sale of The Grand Hotel are in final stages, with signing expected shortly.
First-quarter results met guidance and cost reductions are running ahead of schedule. Updated trading figures will be presented at the annual shareholder meeting on 21 October.
