Sky City cinema deal moves forward

Sky City is close to locking down the sale of its cinema business. Photo / Dean Purcell

Casino operator Sky City says due diligence is finished and a final sale and purchase agreement signed for the sale of its cinemas business in this country and Fiji to Amalgamated Holdings.

The previously announced deal was conditional only on consent under the Overseas Investment Act, Sky City said today. The aim was to complete the transaction by February 18.

The sale price of $61.1 million excluded Sky City's 50 per cent shareholding in international ticketing software group Vista Entertainment Solutions, all cash deposits and all New Zealand freehold land.

Sky City said it would now move to divest its interests in those residual cinema group assets and expected a final total realisation of about $70m, compared to a current carrying value of the total cinema group assets of $61m.

- NZPA