Agreement Reached Between Skycity And Skyline
30 August 2004
Agreement Reached Between Skycity And Skyline Regarding Christchurch Casinos Limited
SKYCITY Entertainment Group announced today that it has reached agreement with Skyline Enterprises Limited regarding their ongoing relationship in regard to Christchurch Casinos Limited (CCL).
SKYCITY recently acquired a 40.5% interest in CCL through its purchase of Aspinall (NZ) Limited. Skyline holds an equal interest. SKYCITY Entertainment Group Managing Director Evan Davies said, "Obviously we are very pleased that the matter has been resolved. We move forward in the knowledge that both parties are comfortable with the board arrangements."
The parties will have equal representation on the CCL board, and have agreed ongoing corporate governance arrangements that reflect their equivalent interests in the company.
The agreement resolves most of the matters that were the subject of litigation between Aspinall, Skyline and its associates, and CCL. It is intended that the litigation will be formally discontinued once a detailed agreement is concluded.
Mr Davies said SKYCITY is looking forward to participating in the governance of the company and believes that SKYCITY's vast experience in the gaming and entertainment industry will be beneficial for CCL. "We're confident that SKYCITY's involvement in the Christchurch casino will prove advantageous to both CCL's and SKYCITY's shareholders."
CCL is the owner and operator of the Christchurch casino and holds an holds an effective 32.2% interest in Victoria Hotels (Christchurch) Limited, the owner of the 296 room, 4 star, Christchurch Crowne Plaza Hotel, located adjacent to the Christchurch casino in central Christchurch. CCL is also a 33% shareholder in Dunedin Casinos Limited, the owner and operator of the Dunedin casino. The other shareholders in CCL are Skyline Enterprises Limited 40.5%, Southern Equities Limited 8.6%, and SPHC (NZ) Holdings Limited, a subsidiary of InterContinental Hotels Group plc, 10.4%.