New Zealand casino operator SkyCity Entertainment Group has confirmed it rejected two takeover bids received in May. Oaktree Capital Management offered NZ$0.70 per share, valuing the company at NZ$772 million. A second undisclosed party bid NZ$0.75 per share, around NZ$827 million. Both proposals were confidential and non-binding.
Both bidders required at least eight weeks for due diligence, debt financing, and deal structuring. Terms included board, shareholder and regulator approval. The potential buyers also sought exclusivity and demanded SkyCity maintain existing credit facilities and refrain from asset sales. That last condition targeted properties earmarked for the company's real-estate monetisation programme.
The board deemed the offers too low to reflect the business's true value and the conditions problematic. SkyCity said it would provide due diligence access if either party returned with revised bids, but neither has.
The approaches came as SkyCity pursues restructuring aimed at NZ$30 million in savings for FY2027 and NZ$70 million for FY2028. In June its Adelaide casino agreed in-principle terms with South Australia's regulator for a A$21 million penalty and compliance measures. The company also launched a strategic review of Adelaide after the property's EBITDA fell 26.7% to NZ$22.8 million and a NZ$52.2 million impairment was booked.
In June SkyCity reported net profit of NZ$18.2 million, down 37.6%, and EBITDA of NZ$181.6 million, down 22.3%. Gaming revenue dropped 5.9% due to the rollout of a card-based play system, weakness in the premium segment and lower foot traffic. Net debt stood at NZ$590.7 million, with a debt-to-EBITDA ratio of 3.1x. No dividend was declared. Asset sales are expected to bring in NZ$275–300 million, including NZ$74.5 million from two Auckland properties.
