Casino boss seeks tighter grip

By PAUL PANCKHURST

Christchurch Casino chairman Barry Thomas yesterday trumpeted plans to strengthen Skyline Enterprises' grip on the company in the face of a possible buy-in by gambling giant SkyCity.

In the latest instalment of his war by press release, Thomas said the board of the casino company would late this month be asked to approve a share placement to Skyline.

Skyline has a direct 30.7 per cent stake in the casino and a 41 per cent interest including shares held indirectly.

Thomas is Skyline's chairman.

The Queenstown company is fighting to stop its partner, the UK gambling group Aspinall, from selling out to local gambling giant SkyCity Entertainment.

Aspinall's interests in the casino are at the same levels as Skyline's.

Thomas said the proposed placement would be worth about 15 per cent of the Christchurch Casino's capital. The money from the placement would be used by the casino to part-fund an intended buy-back of the Aspinall stake.

However, it remains to be seen what Aspinall thinks of that idea - no comment was available yesterday - and the proposal looks more like an attempt to shore up Skyline's defensive position.

Increasing Skyline's stake would stop SkyCity from entering the company on an equal footing by buying out Aspinall.

Thomas believed he had the votes to get the proposal through.

Two directors on the casino company's board are associated with Aspinall and two are associated with Skyline.

Thomas said one Aspinall representative was obliged to act in the interests of the casino company rather than Aspinall - and Thomas had the casting vote anyway.

Asked why Skyline did not try to buy Aspinall's stake, Thomas said: "Aspinall aren't even talking to us."

Skyline has interests in three of the country's six casinos - one each in Christchurch and Dunedin, and one of the two Queenstown casinos.

SkyCity owns Auckland's casino and has majority stakes in the Hamilton and Queenstown casinos where Skyline is the minority partner.

It has been in discussions with Aspinall.

No comment was available yesterday from SkyCity.

Aspinall representative Arthur Pitcher, the long-serving managing director of the Christchurch Casino, was last month stood down from the board after Thomas learned of Aspinall's discussions with SkyCity.

However, he was reinstated after Aspinall took legal action.

Pitcher is not commenting on the ownership issues. "I just prefer to run casinos," he said yesterday.

Likewise, a company with a minority interest in the Christchurch Casino, the London-based InterContinental Hotels Group, says it has no view.

Thomas said the price for the planned placement would be set by an independent valuer.

He would also recommend the board halt dividend payments to shareholders because of planned capital expenditure.

"The dividend clamp, if passed by the board, will obviously affect all shareholders, but the fundamental requirements of the business must come first."

Thomas would not comment on the value of the casino or Aspinall's stake.