SkyCity Opens Structured Process To Test Takeover Interest
SkyCity Entertainment Group will run a structured process to seek proposals for the whole company, after its board rejected two unsolicited approaches earlier this year.
The casino operator is also moving into New Zealand's new online casino market.
Chair Julian Cook announced the move at the annual shareholders' meeting on October 21, 2026, according to the company's published chair and CEO addresses.
How The Process Works
The board said it will engage with interested parties and provide them with access to certain due diligence information to help them develop proposals.
UBS has been appointed as the investment banking adviser, and Chapman Tripp as the legal adviser.
A new Structured Review subcommittee has been established to guide the company through the review.
The board said it is still establishing the process structure, which will take some time, and warned that there is no certainty it will lead to a transaction or an offer.
Earlier Bids Rejected
SkyCity said the two proposals it received earlier in the year were unsolicited, non-binding, highly conditional and indicative.
The board concluded unanimously that both were opportunistic and undervalued the business.
It has received no improved proposals since, and no non-binding whole-of-business proposal from anyone new.
It said it remains aware of ongoing interest in the company as a whole, which is why it chose a formal route.
The board also said its current strategy is robust, but it will consider any proposal that delivers greater value.
Online Licences And Adelaide
The company said it secured the right to apply for two online casino licences in New Zealand's auction, at NZ$15 million each.
The Online Casino Gambling Act took effect on May 1, 2026, and SkyCity described the regulated market as worth more than NZ$1 billion a year.
In Adelaide, SkyCity reached a non-binding heads of agreement with the Minister for Consumer and Business Affairs to resolve outstanding regulatory matters from the independent review.
It includes a A$21 million fine, and the company has decided to initiate a formal sales process for that business.
While You Are Here, Why Not Check Out Our: Casino Games Hub & Free Slots?
The Financial Backdrop
Underlying revenue for the year was broadly flat at NZ$822.7 million, with gaming revenue down 5.9% after the rollout of carded play.
Underlying EBITDA fell 22.3% to NZ$181.6 million, and no dividend was declared for FY26.
SkyCity expects asset sales to raise close to NZ$300 million, including NZ$74.5 million from commercial buildings that settled in September and NZ$221 million from the Grand Hotel, which is likely to settle in December.
It aims to resume dividends in the 2028 financial year.
The company is also widening its cost programme, which now targets NZ$30 million of savings in FY27 and NZ$70 million in FY28.
That includes a reorganisation affecting around 250 roles, mainly in corporate and back-of-house functions. The NZICC convention centre opened in February within its NZ$750 million budget.
Watch for any announcements regarding the process structure and timetable, the licence applications, and the Adelaide sale. More on the new market is in our NZ news section.
