SkyCity Confirms Rejecting Two Takeover Bids

SkyCity Entertainment Group Limited has finally responded to media speculation about a potential takeover of the company. In its release, the company confirmed that it has rejected two such offers. Two Companies Sought to Acquire SkyCity According to the official announcement, SkyCity had indeed been approached by Oaktree Capital with a takeover offer, just as recent media reports had speculated. According to the company, it received two takeover proposals – one from Oaktree Capital Management, and one from an unspecified party. SkyCity also noted that the Oaktree Capital proposal would have seen the latter company acquire the former by purchasing all of the issued shares in SkyCity at an indicative price of NZD 0.70 per share. The second proposal came from an undisclosed party and offered an implied indicative price of NZD 0.75 per SkyCity share. Both proposals were subject to numerous conditions, including a period of at least eight weeks of due diligence and arranging debt financing. According to SkyCity, the proposals were also subject to multiple other conditions, including regulatory and shareholder approvals, among other things. One of the parties that sought to acquire SkyCity also requested that it not enter into any binding agreement to acquire or dispose of any assets, to provide exclusivity, and to retain its existing debt facilities. SkyCity Says the Proposals Did Not Adequately Reflect Its Value SkyCity stated that its board of directors considered both of these proposals carefully and consulted the matter with the company’s management and advisors. After considering the matter, the board unanimously determined that neither proposal adequately reflected SkyCity’s underlying value. Board members also agreed that some of the conditions were “problematic.” As a result, SkyCity advised the two interested parties that it was not prepared to proceed on the terms they proposed. At the same time, SkyCity told them that it could consider engaging further if a revised proposal is submitted. As of the time of SkyCity’s announcement, neither of the two parties had submitted a revised and improved proposal. In the meantime, SkyCity noted that it remains focused on executing the strategic priorities outlined in its FY 2026 results.