New Zealand’s SkyCity Entertainment Group revealed this morning that it had earlier this year received proposals from two suitors – including a fund managed by Oaktree Capital Management – to acquire the entire company.
In a filing, SkyCity said the confidential, unsolicited, conditional, non-binding indicative proposal from Oaktree, received in May, was at an indicative price of NZ$0.70 in cash per SkyCity share while the proposal from an unnamed party was at an implied indicative price of NZ$0.75 cash per SkyCity share – valuing the company at between NZ$772 million and NZ$827 million (US$460 million and US$493 million).
Oaktree has previously bid to acquire Australia’s two dominant casino enterprises – Crown Resorts and Star Entertainment Group – but was unsuccessful on both occasions with Blackstone ultimately taking Crown private and Bally’s Corp last year assuming a controlling stake in Star alongside local partner Investment Holdings Pty Ltd.
Oaktree in 2022 acquired luxury electronic table games supplier Interblock.
The revelation from SkyCity follows Australian media reports that a “cashed-up suitor” was eying full acquisition of SkyCity, naming Oaktree, Blackstone, Bally’s and The Venetian Las Vegas owners Apollo Capital Management as the likely candidates. The New Zealand operator last week confirmed it had launched a strategic review into its Australian resort, SkyCity Adelaide, that could result in a sale of that property.
In confirming today that it had already received two proposals in May, SkyCity noted that both had been subject to numerous conditions, including a period of at least eight weeks due diligence and arranging debt financing. The proposals were also conditional on agreement around transaction structure, negotiation of binding documentation, unanimous SkyCity board support, SkyCity shareholder approval, regulatory approvals and acquirer internal approvals, amongst other matters.
SkyCity was, it added, requested by one or both parties to not enter into any binding agreement to acquire or dispose of any assets – including under its asset monetization program – to provide exclusivity and to retain its existing debt facilities.
“The SkyCity Board carefully considered these indicative proposals, with input from management and advisers,” the company explained. “The Board unanimously determined that these proposals did not adequately reflect the underlying value of the company, and that the conditions were problematic. Accordingly, the parties were advised that SkyCity was not prepared to proceed on the terms proposed.”
SkyCity did, however, indicate that it was open to further engagement including the provision of due diligence information if a revised proposal was received that addressed these issues. No such improved proposal has been received.
SkyCity last month extended and consolidated two tranches of its existing bank facilities into a single facility ahead of their scheduled maturities in July and September 2027 – one of multiple transactions undertaken to shore up its finances.
The company also recently confirmed the sale of an office building and investment properties located near SkyCity Auckland and entered into a non-binding heads of agreement for the sale of the property’s luxury The Grand Hotel.
SkyCity last week reported a 44.2% year-on-year decline in EBITDA to NZ$120.5 million (US$71.5 million) and a 37.6% fall in net profit after tax to NZ$18.2 million (US$10.8 million) for the year ended 30 June 2026, impacted by weaker visitation, the rollout of mandatory carded play across its domestic casinos and higher costs linked to the opening of the New Zealand International Convention Centre (NZICC).
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