[COM] SkyCity Adelaide Casino Expansion | 55m | 12 Levels | Hotel

[Ben]

Not sure where else to post this:

SkyCity high on takeover offer

ADELAIDE SkyCity casino owner's shares soared in early trading on the ASX today as the gaming firm revealed that it had received a takeover approach.

At 1025 AEST, SkyCity Entertainment Group's shares were up $1.06, or 28.8 per cent, at $4.74.

"SkyCity advises that it has received an indicative and confidential approach from a party expressing an interest in acquiring 100 per cent of the shares in the company,'' SkyCity said today.

"In its approach, the party indicates a potential cash offer price range (subject to conditions) which would represent a significant premium to SkyCity's current share price, if a transaction were to eventuate. "

"SkyCity's board of directors has not yet made any decision regarding the merits of the approach."

The company cautioned shareholders that there was no assurance that the approach received would result in any specific transaction.

"The board will keep shareholders appropriately informed of any further developments in relation to the approach received,'' the company said.

SkyCity operates gaming and entertainment complexes in Australia and New Zealand, including casinos in Auckland and Adelaide.

SkyCity booked a net profit of $NZ98.4 million in fiscal 2007 - down 18.1 per cent.

[Pistol]

This is SkyCity as a group.

Forgot to mention that there are plans for an internal courtyard preparing the casino for the smoking ban. Plans have been lodged and approved and it is expected to be completed by the end of the year. This is to be above the Grandstand Bar.

BTW to get back on this threads topic, the balconies are complete. They were finished last week.

[Ben]

This is SkyCity as a group.

Forgot to mention that there are plans for an internal courtyard preparing the casino for the smoking ban. Plans have been lodged and approved and it is expected to be completed by the end of the year. This is to be above the Grandstand Bar.

BTW to get back on this threads topic, the balconies are complete. They were finished last week.

Only Adelaide Skycity is on the market due to "poor performance" in relation to the groups other casinos in NZ and Darwin. Interesting to see what this means for the carpark plans and further stages.

[Pistol]

^^ That is a myth Beamer. SkyCity Adelaide is the strongest performer out of SkyCity's casino portfolio.
And in that article, it stated about this unknown company interested in acquiring 100 per cent of SkyCity shares - therefore a takeover of the entire SkyCity Organisation.

[Ben]

^^ That is a myth Beamer. SkyCity Adelaide is the strongest performer out of SkyCity's casino portfolio.
And in that article, it stated about this unknown company interested in acquiring 100 per cent of SkyCity shares - therefore a takeover of the entire SkyCity Organisation.

I posted an article about it a few months ago. The performance was actually good but compared to the other casinos it was poor if that makes sense. See if I can dig it up.

[Cruise]

Remember you could sell a profitable casino for a lot more than one losing money.

[Ben]

Sky City on track to grow profit by 10%

Sky City Entertainment Group Ltd has reported an 18 per cent rise in annual profit and flagged the possible sale of its Adelaide casino.

The group, which is listed in Australia and New Zealand, also said profit growth this year would be slower than last year.

Sky City generated a net profit of $NZ98.4 million ($A86.18 million) for 2006/07, up 18.1 per cent.

It said net profit for this financial year would rise by between 10 per and 12 per cent, as it cut costs and focussed on its core gambling business.

But following enquiries from a range of parties, Sky City said it might sell South Australia's only casino and entertainment venue, Sky City Adelaide.

Seven parties were invited to make indicative bids for the asset.

"Based on these indicative values, the board considers it owes shareholders the opportunity to realise this value," Sky City said.

"If the interested parties wish to proceed to binding offers, they will be invited to do so."

Sky City also said that a sale would not proceed unless the offers significantly exceeded its own valuation.

Sky City said was prepared to sell its New Zealand cinemas on the same basis, after disappointing trading in fiscal 2007 due to low-performing film product.

Executive director Elmar Toime said Sky City was on track to deliver cost reductions of $NZ33 million ($A28.9 million) in 2007/08, by targeting its labour and procurement bills and ensuring a culture of tight cost control.

"Full year 2008 budgets and business plans are on target to achieve results," Mr Toime said.

Group earnings before interest, tax, depreciation and amortisation (EBITDA) were down by 1.3 per cent to $NZ297.2 million ($A260.29 million).

Auckland casino EBITDA was down 2.9 per cent to $NZ208.6 million ($A183 million), Darwin was up 6.7 per cent to $A35.2 million, Adelaide down 9.5 per cent to $A20.9 million, and Hamilton up 12.1 per cent to $NZ19.5 million ($A17 million).

The company said it excepted a gradual recovery of Auckland gaming revenues as main gaming floor renovations were completed.

At the Darwin casino, preliminary work is due to start on a $A30 million expansion in late August, with completion scheduled for December 2008.

Meanwhile the recruitment of a new chief executive was progressing, with the board expected to make an appointment by the end of October.

The company declared a final dividend of 12 NZ cents a share, taking the total for the year to 21 NZ cents, compared with 26 NZ cents last year.

Sky City shares ended up two cents at $3.65 on the Australian stock exchange on Monday.

And from ABC News

Skycity considers Adelaide Casino sale

The owner of the Adelaide Casino, the New Zealand-based Skycity Entertainment, says it may sell the casino unless profits improve.

The South Australian Government has approved an undercover car park as part of a $50 million upgrade plan, but Skycity thinks bans on smoking, from November, will reduce profits.

Skycity says it wants to cut $33 million in spending at all its casinos over the next 18 months.

ABN Amro-Morgan analyst Legh Davis says Skycity is considering where best to invest, putting the Adelaide Casino under pressure.

"They have a monopoly in New Zealand. They may concentrate their efforts in their home territory," he said.

[Pistol]

Beamer, I work at SkyCity and I can tell you that they are not looking at selling the Adelaide property due to poor performance. If they were to sell one of their properties for this reason then it would more than likely be the Auckland property - but can you see that happening?
Realistically, Adelaide is probably the easiest property to offload.

[Ben]

Skycity opens books to suitor


September 28, 2007 10:30am

SKYCITY Entertainment will open its books to its takeover suitor, but will not reveal who the mystery bidder is. It will also continue to test interest in selling the Adelaide Casino.

The Adelaide casino has been on the market since May.

One week ago Skycity said it had been approached by a suitor willing to pay a ``significant premium'' for the company.

Yesterday the New Zealand gambling and cinema group said it had evaluated the approach over the past week, and ``considers the interested party to be credible and its approach to Skycity to be genuine''.

``(Skycity) has agreed to allow the interested party to undertake commercial and financial due diligence on Skycity which may potentially result in a firm proposal to acquire Skycity, and will consider approaches from other parties interested in acquiring control of or merging with Skycity,'' the company said..

``The board plans to actively approach other parties to assess their potential interest in Skycity.

``The board continues to caution shareholders that there is no assurance that the approach received will result in any specific transaction.''

Skycity said the bidder had insisted on remaining anonymous.

Australian gambling companies Tabcorp and Tattersall's have already indicated they are not in the running, while PBL has not returned calls.

Skycity shares were 26c higher at $4.59 in early trade.

[duke]

They are looking at selling it now.. What ever happened to that big plan of building a hotel and car parking.
I thought they had worked out a deal to pay the Festival Theater for inconvenience to them during construction??

[Pistol]

I have a gut feeling that it is PBL.

[bmw boy]

PBL adding Adelaide casino to its portfolio would be a good thing, wouldn't it?

[Norman]

Lets have the Logies from the Adelaide Crown

[Paulns]

PBL adding Adelaide casino to its portfolio would be a good thing, wouldn't it?

Hell yeah! Bring on PBL!!! Just look what the crowns done for Melbourne and their plans in Macau? This company really knows casino's and they would really have the know how, to completly transform the Adelaide casino!!!!!!

Crown Adelaide!!!!!

[rogue]

So how are the new balconies going?