SkyCity rejected NZ$827m takeover bid as too low
SkyCity Entertainment Group rejected two takeover approaches earlier this year worth up to approximately NZ$827 million after its board unanimously determined the proposals undervalued the casino operator.
SkyCity disclosed the approaches on Tuesday following media speculation that it had been in discussions with Oaktree Capital over a potential takeover.
The company said it received two confidential, unsolicited and non-binding proposals in May 2026. A special situations fund managed by Oaktree Capital Management offered NZ$0.70 cash per SkyCity share, while an unidentified second party proposed an implied price of NZ$0.75 per share.
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Based on SkyCity’s 1.103 billion shares outstanding, the proposals valued the company’s equity at approximately NZ$772 million and NZ$827 million respectively.
However, SkyCity said its board unanimously rejected both approaches after determining they did not adequately reflect the underlying value of the company.
“The Board unanimously determined that these proposals did not adequately reflect the underlying value of the company, and that the conditions were problematic,” SkyCity said.
“Accordingly, the parties were advised that SkyCity was not prepared to proceed on the terms proposed.”
SkyCity did leave the door open to further discussions, telling both parties it was prepared to consider providing due diligence information if they returned with revised proposals addressing the board’s concerns.
Neither bidder submitted an improved offer.
Both proposals contained a number of conditions, including at least eight weeks of due diligence, arranging debt financing, unanimous SkyCity board support, shareholder approval and relevant regulatory and internal approvals.
SkyCity was also asked by one or both prospective buyers to provide exclusivity, retain its existing debt facilities and refrain from entering binding agreements to buy or sell assets.
That final condition potentially conflicted with SkyCity’s ongoing asset monetisation strategy, which is expected to generate gross proceeds of between NZ$275 million and NZ$300 million.
The programme includes the unconditional NZ$74.5 million sale of its 99 Albert Street and Victoria Street investment properties, as well as a non-binding agreement for the sale of the Grand Hotel.
SkyCity said it remains focused on the strategic priorities outlined alongside its FY26 results on August 20, including a group-wide operating reset targeting NZ$30 million in realised benefits in FY27, rising to NZ$70 million in FY28.
The company is also undertaking a strategic review of SkyCity Adelaide following a non-binding agreement reached with South Australian regulator Consumer and Business Services.
