Skycity Buys Tainui's 15% In Skycity Hamilton
Skycity Entertainment Group Buys Out Tainui's 15% Holding In Skycity Hamilton
SKYCITY Entertainment Group Limited (SKYCITY) today advised the New Zealand stock exchange that it has reached an agreement to purchase Tainui Group Holdings Limited's (TGHL) 15% shareholding in Riverside Casino Limited, the owner of the SKYCITY Hamilton gaming and entertainment complex.
This increases SKYCITY's equity position in the Hamilton business to 70%.
SKYCITY Entertainment Group Managing Director, Evan Davies, said the company's interest in acquiring the shareholding was a logical move in a company where SKYCITY is already majority shareholder and the operator of the business.
"SKYCITY Hamilton is a very well-performing business, so we were naturally interested in acquiring an additional holding. This is a sound commercial decision and one we are confident our shareholders will support."
The purchase price is $10.5 million (plus accrued convertible note interest), which will be paid from SKYCITY's existing financial resources.
The acquisition is subject to regulatory approval from the Overseas Investment Commission and the Casino Control Authority.
SKYCITY Hamilton reported a strong performance for the 2004 interim result period. Revenues were up 23% (from the second half of 2003), with EBITDA at 44% of revenues.
"We are excited with the progress SKYCITY Hamilton has achieved to date. The property is an excellent example of SKYCITY's successful business philosophy translated into a local environment. All aspects of the business are performing well, with the newly opened SKYCITY Hamilton Function Centre already proving popular with forward bookings through to 2005."
"Developments such as the recently announced expansion of Hamilton airport have encouraged SKYCITY to invest further in the Waikato. Our decision demonstrates our confidence in the region," said Mr Davies.
The remaining 30% of Riverside Casino Limited is owned by Perry Developments Limited - a Hamilton based company.
"SKYCITY has had a very positive working relationship with Perry Developments and we look forward to continuing this into the future," said Mr Davies.
Hamilton opened in September 2002. * The business
operates: o 339 gaming machines o 23 gaming tables
o The Post - 140-seat buffet restaurant o Number
Eight bar o SKYCITY Hamilton Function Centre - 400