KEY POINTS:
SkyCity Entertainment Group Ltd's managing director Evan Davies is to receive a $1.7 million exit payment.
The company announced today that Mr Davies is leaving, effectively immediately. Director Elmar Toime will step into the role of executive director until a new managing director is found.
The company's shares
rose 14c to $5.15 on the news.
Chairman Rod McGeoch said the departure was amicable and mutually agreed after a board meeting last week.
"We just sorted ourselves through that week. There was no acrimony. This is a guy who has built a company from $160 million to $2 billion.
"The board is deeply aware of, and acknowledges, the contribution that he has made," Mr McGeoch said.
He said there had been no direct pressure from institutional investors on him as chairman to make a change in managing director.
Mr Davies' 1998 contract has a clause that provides for a $1.7 million payment on an agreed departure.
"We just exercised our rights under that provision," he said.
Mr McGeoch said a search for the new managing director would begin immediately.
Candidates would be sought from New Zealand, Australia and globally.
The news of a change of leadership came as The Australian newspaper reported that SkyCity had received unsolicited bids for assets.
The company said in May it would cull 230 jobs as part of a plan to trim $33 million in costs, and sell its $54m Metro building in Auckland.
It also said it would also examine its Adelaide casino, 40 per cent-owed Christchurch casino, and cinema business, with a view to sell any business not providing the required return on capital.
Mr McGeoch said the fact that nothing had been announced meant the company was still reviewing the assets.
"If a price sensitive piece of information had come into existence we would have to announce it. The fact that we haven't means that we're just still in review."
The company is due to update investors when it announces its profit in August.
First NZ Capital was believed to be advising SkyCity.
Mr Davies had led the company for 11 years.
"Without doubt the last 12-18 months have been challenging. However ... the initiatives announced to the market on May 22 will ensure SkyCity is positioned for long term sustainable growth to deliver shareholder value," Mr McGeoch said.
He said the board and management of the company remained committed to delivering on the restructuring and operational initiatives designed to increase revenues, reduce costs and maximise margins to improve underlying business growth, particularly in Auckland.
Interim executive director Elmar Toime, a former New Zealand Post chief executive, was credited with leading that organisation through its transformation.
Mr Toime will be based in Auckland while in the role.
- NZPA