New Zealand casino operator SkyCity disclosed in August that it had turned down two takeover bids submitted in May. Both proposals were confidential and non-binding. The first came from a fund managed by Oaktree and valued shares at NZ$0.70. A second, unnamed bidder offered NZ$0.75. With 1.1 billion shares outstanding, the implied equity valuations reached NZ$772 million and NZ$827 million respectively, equivalent to up to $493 million.
The board rejected both unanimously, citing undervaluation and onerous conditions. Both parties requested at least eight weeks of due diligence, debt financing approvals, exclusivity during negotiations, and preservation of SkyCity's existing credit facilities. One or both also sought restrictions on major asset transactions before closing.
SkyCity informed both parties it would re-engage if terms improved and data access for validation was granted. Neither returned with a revised offer.
The operator is pressing ahead with an asset monetisation programme targeting NZ$275–300 million in proceeds ($164–179 million). The plan includes the completed sale of two Auckland properties for NZ$74.5 million ($44.4 million) and a conditional agreement for the Grand Hotel. A strategic review of SkyCity Adelaide is under way in parallel.
