Sky City appears to have another suitor.
Sky City said today it had received a "further credible expression of interest" in acquiring 100 per cent of the company.
Sky City said in a statement its board sub-committee of independent directors was considering the expressions of interest and expects at least one additional party to undertake
commercial and financial due diligence.
"Sky City advises that it will continue to consider the expressions of interest it has received to date and any further approaches it may receive and that it may permit other parties to undertake due diligence where it is satisfied as to their credibility and bona fides."
It confirmed that the mystery party which initially approached it had already commenced due diligence. Sky disclosed that interest on September 21 in the middle of a press release about a dividend reinvestment plan.
The company said it continued to caution shareholders that there was "no assurance that any of the approaches received will result in any specific transaction".
In September, the casino company said a confidential bidder, speculated in the media to be US private equity firm Texas Pacific Group (TPG), wanted to buy 100 per cent of shares in cash at a significant premium to the then share price.
A lack of further information about the offer buffeted the Sky share price around.
An ABN Amro analyst believes a buyer would have to offer between $6.00 and $6.10.
ABN Amro valued the stock at $6.14, including benefits from a business shakeup, and gave it a more market-oriented, target price of $5.89.
A number of parties were looking at Sky City, and he estimated there was a 70 per cent chance of a takeover bid emerging.
Goldman Sachs JBWere has downgraded Sky City to hold from buy on uncertainty over whether a bid would succeed.
Analyst Marcus Curley said the most likely bidder was a private equity player at up to $5.75 a share, but that bid had only a 40 per cent chance of success based on market valuations of Sky City.
Sky City shares opened 6c higher at $5.39 this morning. They have traded below $5.00 for much of the last year, hitting a 20-month low of $4.07 after its annual results in August.
- NZPA
