SkyCity is thought to be in the final stage of negotiations to sell its cinema business to an international buyer.

The buyer was understood to be American-owned Reading Cinemas, though a sale was far from certain, The Dominion Post reported today.

In February, SkyCity wrote down the value of its cinema business by $60 million, saying that was based on negotiations with potential buyers and disappointing summer holiday operating figures.

The Dominion Post said it understood negotiations between SkyCity and Reading had been dragging on for some time and could prove fruitless.

SkyCity's new chief executive Nigel Morrison said he was confident that should the company retain the cinemas, the economic return on them would more than cover their carrying cost.

SkyCity shares closed at $3.72 yesterday, having ranged between $5.41 and $3.46 in the past year.