SkyCity Entertainment Group has rejected two takeover proposals received in May, including an approach from a special situations fund managed by Oaktree Capital Management.
Oaktree proposed NZ$0.70 (US$0.42) cash per SkyCity share, while an unnamed party submitted an implied indicative price of NZ$0.75 cash per share. Both proposals were unsolicited, conditional and non-binding.
The approaches come as SkyCity works to reduce debt and restructure parts of its operations. The operator ended FY26 with NZ$591m in net debt and is targeting NZ$275m to NZ$300m in gross proceeds from its asset monetisation programme.
That programme includes the unconditional NZ$74.5m sale of its 99 Albert Street and Victoria Street investment properties and a non-binding agreement covering the proposed sale of the Grand Hotel.
SkyCity is also resetting its operating model and reviewing its Adelaide operation.
Both takeover proposals required at least eight weeks of due diligence and arrangements for debt financing. They were also conditional on agreement over transaction structure, binding documentation, unanimous SkyCity board support, shareholder approval and regulatory clearance.
One or both parties requested exclusivity, retention of SkyCity’s existing debt facilities and restrictions preventing the operator from entering binding agreements to acquire or dispose of assets. The latter condition would have affected SkyCity’s ongoing asset monetisation programme.
The board unanimously determined that the proposals did not adequately reflect SkyCity’s underlying value and considered their conditions problematic. It told both parties it was prepared to consider further engagement if revised proposals addressed those concerns, but neither submitted an improved proposal.
Oaktree’s approach comes against an established record of investment in the gaming sector. Funds managed by the investment manager acquired electronic table games supplier Interblock in 2022, while its Special Situations portfolio also includes distributed gaming terminal operator J&J Ventures Gaming.
Oaktree Managing Director David Quick leads gaming investments within its Special Situations Group and sits on the boards of Interblock, J&J Ventures Gaming and Mesquite Gaming.
Oaktree also previously owned live slot streaming supplier Awager. Aristocrat agreed in October 2025 to acquire Awager from funds managed by Oaktree for an undisclosed amount. The investment manager has also pursued casino-sector opportunities, including a financing proposal involving Crown Resorts in 2021.
Last week, SkyCity reported FY26 revenue of NZ$878.9m, up 6.5% year-on-year, while reported EBITDA fell 44.2% to NZ$120.5m and net profit declined 37.6% to NZ$18.2m. The operator also opened a strategic review of SkyCity Adelaide following regulatory and operational changes.
SkyCity is targeting NZ$30m in realised operating-model benefits during FY27, rising to NZ$70m in FY28
