SkyCity Rejects Two Conditional Takeover Proposals Valued Between NZ$772 Million and NZ$827 Million

SkyCity Entertainment Group disclosed it received and rejected two unsolicited takeover proposals in May. The New Zealand casino operator received an indicative bid from a fund managed by Oaktree Capital Management at NZ$0.70 cash per share and another from an unnamed party at an implied NZ$0.75 per share, according to Inside Asian Gaming. These valued the company between NZ$772 million and NZ$827 million (US$460 million and US$493 million).

Both proposals were confidential, conditional and non-binding. They required at least eight weeks of due diligence, debt financing, agreement on transaction structure, binding documentation, unanimous board support, shareholder approval, regulatory approvals and internal acquirer approvals. The suitors also requested SkyCity avoid binding agreements on asset acquisitions or disposals, including its asset monetization program, to preserve exclusivity and existing debt facilities.

“The SkyCity Board carefully considered these indicative proposals, with input from management and advisers,” the company stated. “The Board unanimously determined that these proposals did not adequately reflect the underlying value of the company, and that the conditions were problematic. Accordingly, the parties were advised that SkyCity was not prepared to proceed on the terms proposed.”

SkyCity indicated it remains open to further engagement and due diligence on any revised proposal that addresses the valuation and condition issues. No improved proposal has been received.

Oaktree Capital Management’s Prior Casino Pursuits

Oaktree Capital Management previously bid unsuccessfully for Crown Resorts and Star Entertainment Group in Australia. Blackstone ultimately took Crown private while Bally’s Corp assumed a controlling stake in Star alongside a local partner last year. Oaktree did acquire electronic table games supplier Interblock in 2022.

The SkyCity filing follows Australian media reports identifying a cashed-up suitor for the full company, with Oaktree, Blackstone, Bally’s and Apollo Capital Management listed as likely candidates.

SkyCity’s Financial Position and Strategic Review

The bids arrive as SkyCity conducts a strategic review of its SkyCity Adelaide resort that could result in a sale. The company extended and consolidated US$81 million in credit facilities, sold Auckland commercial properties for US$43.5 million, and entered a non-binding agreement to sell The Grand Hotel at SkyCity Auckland.

For the year ended 30 June 2026, SkyCity reported EBITDA of NZ$120.5 million (US$71.5 million), down 44.2% year-on-year, and net profit after tax of NZ$18.2 million (US$10.8 million), down 37.6%. Results reflected weaker visitation, mandatory carded play rollout, higher costs from the New Zealand International Convention Centre opening and external factors.

The board’s rejection highlights a clear valuation gap. Any future approach will need to better align with SkyCity’s assessment of its underlying worth while the operator executes its review and asset sales.

Reporting: Inside Asian Gaming

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