SkyCity launches strategic review as Adelaide sale process advances

SkyCity has launched a structured process to evaluate potential transactions and other opportunities as it continues efforts to increase shareholder value.

The move follows two unsolicited approaches disclosed on 25 August regarding a potential acquisition of the Group. SkyCity's board rejected the proposals after determining they did not adequately reflect the company's underlying value and contained problematic conditions.

Discussions with both parties have continued, but no improved proposals have been received. SkyCity has now appointed UBS and Chapman Tripp to engage with interested parties and assess other potential options, although it cautioned there is no certainty of a transaction.

Separately, the company is preparing to formally begin the sale process for its Adelaide business. SkyCity said it had received inquiries from credible interested parties since announcing a strategic review of the asset in August. UBS will lead the process.

The group is also progressing an asset monetisation programme targeting aggregate proceeds of NZ$275m to NZ$300m before the end of 2026. It has already generated NZ$74.5m from the sale of commercial properties and is in advanced exclusive negotiations to sell The Grand Hotel.

Meanwhile, SkyCity's cost reduction programme remains on track to deliver NZ$30m in benefits in FY2027, increasing to NZ$70m in FY2028. More than 200 corporate roles have been removed in New Zealand, with the next phase focusing particularly on external spending.

In Adelaide, SkyCity is also negotiating a binding agreement with Consumer and Business Services to resolve outstanding regulatory matters arising from an independent review.

The company is additionally participating in New Zealand's online gambling licence auction, which is due to conclude on 14 October.

SkyCity said it would provide further updates on trading and its strategic initiatives at its annual shareholders' meeting on 21 October.