Entertainment group Sky City says a cash offer made to Skyline Enterprises to acquire the remaining 50% interest in Christchurch Casino has been rejected.

Sky City confirmed in a statement this morning that it had advised Skyline Enterprises of a cash offer for the shares but this was rejected by the board of Skyline Enterprises.

A BusinessDay report this week suggested Sky City had offered between $100 million and $110 million for the 50% stake.

Sky City Cinemas will have an all-new look from the start of July, with the cinema company changing its name to Event Cinemas.

The brand changeover has been expected ever since Sky City Entertainment sold its cinema business to Australian-based Amalgamated Holdings earlier this year.

The money generated by the sale of Sky City’s cinemas could see it take a punt on owning the rest of the Christchurch Casino as it concentrates on its core casino business.

Sky City sold its ill-fated cinema holdings in New Zealand to Australian-based exhibitor Amalgamated Holdings this week, netting $59 million for more than 100 screens around New Zealand and Fiji.

Sky City Entertainment will pursue growth opportunities including strategic acquisitions following a planned $228.9 million capital raising, chief executive Nigel Morrison says.

Mr Morrison, who joined Sky City in December 2007, says the casino and cinema company wasn’t forced into raising new equity and could have carried on regardless.

But the state of the global credit markets means that bringing in equity now is prudent and will allow the company to pursue opportunities in the current market.

SkyCity Entertainment plans to raise up to $228.9 million through a share placement and top-up facility to reduce gearing and debt levels.

The casino and cinema operator plans an underwritten placement of 71 million new shares at an indicative price of $2.52 a share, a share purchase plan of up to $35 million and a top up offer to “eligible” shareholders of up to $15 million.