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.
Source: Australian Financial Review