SkyCity determining market interest in Auckland hotel

SkyCity Auckland

New Zealand's SkyCity Entertainment is reportedly looking for strategic investors to determine market interest in some of its assets, including its "under-performing" Darwin casino and one of its Auckland hotels. 

Reports indicate that SkyCity's debt-to-EBITDA ratio is expected to triple by the 2018 financial year, and that the company still has several projects  in its pipeline. By selling off some non-core assets, SkyCity could eliminate the need for a capital raising in the future. The company could also be purchased in its entirety.

If The Star Entertainment Group acquired SkyCity, the combined businesses could "create a trans-Tasman gaming powerhouse," reports suggest, noting that such an acquisition is unlikely given Star Entertainment's own projects and SkyCity's price.

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Source: Australian Financial Review

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The transaction, expected to be consummated in the first half of 2020, is still subject to regulatory approval and other closing conditions.

The China-based conglomerate also acquired the iconic brand's IP assets as part of the £11 million deal, with the brand expected to live on online.