KEY POINTS:
Sky City has revealed a secret cash buy-out bid for 100 per cent of its shares.
Sky City Entertainment Group says it has received an indicative and confidential approach from a party expressing an interest in acquiring the company.
The group's share price rocketed up today after the company revealed the approach.
Potentially an offer price could be at a "significant premium" to Sky City's opening share price today of $4.35.
Around 11.30am today the company's shares were up $1.17, or 27 per cent, on yesterday's close to $5.50.
Sky City operates casinos and hotels in this country and Australia and also has a cinema arm.
An analyst, who did not want to be identified, said Sky City was clearly considering the approach, with any offer having to be for considerably more than shares were trading at before the company made its announcement.
"There's a number of organisations out there (that had the ability to launch a bid), the Aussie gaming players, private equity players, international gaming players. You just don't know at this stage," he said.
"(Sky City) is currently in a depressed state of play, with regards particularly to the Auckland facility and the share price (before the announcement) is relatively low compared to where it's been historically."
Sky City said it had received an indicative and confidential approach from a party expressing an interest in acquiring 100 per cent of the company's shares.
"In its approach, the party indicates a potential cash offer price range (subject to conditions) which would represent a significant premium to Sky City's current share price, if a transaction were to eventuate," the company said.
Sky City's directors had not yet made any decision on the merits of the approach.
"Accordingly, the board cautions shareholders that there is no assurance that the approach received will result in any specific transaction," Sky City said.
The board would keep shareholders appropriately informed of any further developments. It had no further comment to make at this stage.
For the year to the end of June, Sky City reported an 18 per cent fall in net profit to $98.4 million. Last month it forecast a 10 to 12 per cent growth in net profit this year.
The company also said last month that it was prepared to sell its New Zealand cinemas and Adelaide casino but only if offers exceeded what the company thought the properties were worth.
- NZPA
