SkyCity Entertainment Group seeks proposals for potential sale of entire portfolio

SkyCity Entertainment Group will consider proposals from interested suitors to buy its entire portfolio, which includes New Zealand’s largest casino, the 328-meter Sky Tower, the New Zealand International Convention Centre, and casinos in Hamilton and Adelaide.

Chairman Julian Cook said the board wanted to test the true value to shareholders of continued interest in SkyCity’s operations, adding that the Board of Directors would consider any buyout if it was considered a viable alternative to the company’s growth strategy.

“In the interests of shareholders, the Board has decided to seek proposals through a structured process,” Cook said at the company's annual general meeting.

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“This will involve engaging with interested parties and giving them access to some due diligence information to help them develop their proposals.”

UBS and Chapman Tripp have been appointed as investment banking and legal advisers, respectively, for this process.

“The Board remains confident that our current strategy is robust,” Cook said.

“However, if a proposal emerges that does deliver greater value for shareholders than that strategy, the Board will consider it carefully. We are now establishing the structure for this process, which will take some time to progress.”

The announcement came as the operator revealed that group trading in the first quarter of the 2027 fiscal year had been consistent with the fourth quarter of fiscal 2026.

Cook said consumer conditions in New Zealand and Australia remain subdued.

“Despite these conditions, SkyCity is pleased with the positive start to the year: revenue is tracking in line with expectations, and the cost savings programme is ahead of schedule in delivering the full year targeted benefits, with around a quarter of the expected annual benefits already achieved,” he said.

SkyCity remains confident in the earnings outlook provided at the fiscal 2026 result in August 2026, noting that this now needs to reflect the sale of The Grand Hotel.

SkyCity is not providing formal guidance at this stage, given the timing of its online casino market entry is still to be determined and the ongoing macroeconomic uncertainty in New Zealand and Australia.

Chief executive Jason Walbridge said the auction for online licenses settled at a price within the scenarios the company modelled.

“We are confident we can achieve the appropriate return on the capital invested,” Walbridge said.

“It was a deliberate capital allocation decision to reduce from the maximum three allowable licenses to two, ensuring we remained within our risk-adjusted return on capital targets.”

He added, “We believe we can compete strongly in this important market. Being a land-based casino operator for 30 years, we have a brand New Zealanders know and trust, which is the most important attribute of online brands, and we will now be able to advertise and market our online presence, which we haven’t been able to before.”