SkyCity Reveals It Rejected Two Takeover Proposals
New Zealand.- 26 August 2026 | www.zonadeazar.com SkyCity Entertainment Group has confirmed that it received two takeover proposals in May 2026, both of which were rejected by its board.
The approaches were unsolicited, conditional and non-binding, including one from funds managed by Oaktree Capital Management and another from an unidentified party.
Oaktree Offered NZ$0.70 Per Share
The first proposal came from funds managed by Oaktree Capital Management.
The group offered an indicative NZ$0.70 in cash for each SkyCity share.
Based on approximately 1.10 billion shares outstanding, the proposal implied an equity valuation of around NZ$772.1 million.
Second Proposal Reached NZ$0.75 Per Share
SkyCity also received a second approach from an unnamed party.
That proposal carried an implied indicative value of NZ$0.75 per share.
It valued SkyCity’s issued equity at approximately NZ$827.3 million.
Board Rejected Both Approaches
The board reviewed both proposals with input from management and external advisers.
It unanimously concluded that neither adequately reflected SkyCity’s underlying value.
The company also considered several of the attached conditions to be problematic.
At Least Eight Weeks of Due Diligence
Both approaches required a minimum eight-week due-diligence period.
The prospective buyers also needed to arrange debt financing to complete the transactions.
Additional conditions included:
- Agreement on transaction structure.
- Negotiation of binding documentation.
- Unanimous SkyCity board support.
- Shareholder approval.
- Regulatory approvals.
- Internal approvals from the acquirers.
Restrictions on SkyCity Strategy
One or both bidders also sought restrictions affecting SkyCity’s ongoing operations.
These included requirements that the company not enter into binding agreements to acquire or dispose of assets, including under its current asset-monetisation programme.
Requests also included exclusivity and retention of SkyCity’s existing debt facilities.
SkyCity Remained Open to Better Offers
Although the original terms were rejected, the board did not rule out further engagement.
SkyCity informed both parties that it was prepared to continue discussions and provide due-diligence information if revised proposals addressed its concerns.
Neither bidder subsequently submitted an improved proposal.
Disclosure Follows Market Speculation
SkyCity disclosed the approaches after market reports suggested it was in discussions with Oaktree Capital over a potential takeover.
The company issued an NZX and ASX announcement on 25 August to clarify the situation and confirm that the earlier proposals had been rejected.
Asset Monetisation Programme Continues
SkyCity will continue executing its strategic priorities and asset-monetisation programme.
The company expects the programme to generate NZ$275 million to NZ$300 million in gross proceeds.
This includes the unconditional NZ$74.5 million sale of Auckland investment properties and a non-binding agreement covering the potential sale of the Grand Hotel.
SkyCity Adelaide Strategic Review
The group is also continuing a strategic review of SkyCity Adelaide.
The process forms part of a wider financial and operational restructuring designed to strengthen the balance sheet and focus resources on priority assets.
Corporate Context
SkyCity operates casinos, hotels, restaurants and entertainment assets across New Zealand and Australia.
The group is undergoing a period of transformation following several years of regulatory scrutiny, compliance investment and balance-sheet initiatives.
The takeover approaches indicate that the company continues to attract institutional acquisition interest despite that restructuring process.
Next Steps or Impact
There is currently no active takeover offer for SkyCity.
The board will continue focusing on strategic priorities and asset monetisation.
SkyCity has left the door open to evaluating future approaches if they offer a stronger valuation and more acceptable terms.
The disclosure also establishes a public benchmark for valuations the board considered insufficient: NZ$0.70 and NZ$0.75 per share.
Editó: @fonta
