SkyCity Entertainment Group considered, then rejected, a takeover from Oaktree in May
SkyCity Entertainment Group revealed it rejected unsolicited takeover bids from Oaktree Capital and another party in May, citing inadequate valuation and problematic conditions. The company is currently focused on an asset monetization program and maintaining its existing debt facilities.
Why it matters
The disclosure provides transparency regarding corporate governance and the valuation of major entertainment assets in the New Zealand market.
SkyCity's new convention centre in Auckland. Photo / Michael Craig
SkyCity Entertainment Group got a takeover offer from an American business three months ago, never told the market about that, and today said it had rejected it.
Media in Australia has now reported on a potential takeover from private equity vulture fund Oaktree Capital in the United States.
Oaktree was the owner of MediaWorks, which owned TV3 and a radio station network.
Today, Auckland-headquartered SkyCity issued an NZX notice telling of its previous dealings with Oaktree.
“SkyCity advises that in May, it received a confidential, unsolicited, conditional, non-binding indicative proposal from a special situations fund managed by Oaktree Capital Management, L.P, to acquire all of the issued shares in SkyCity at an indicative price of 70c cash per SkyCity share, and another party at an implied indicative price of 75c cash per SkyCity share,” it said today.
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