Investors Mutual boosts stake in SkyCity on year low share price
Share purchase comes amid persistent rumours about a possible tie up with Australia's Star Entertainment.
Investors Mutual, the Australian equity fund manager, has increased its stake in the casino operator, SkyCity Entertainment Group to 6.25%, documents filed with the NZX show.
The investor now holds 40,793,496 of the 652,750,845 shares on issue for SkyCity following a series of purchases since October 10. It had not updated the market on a movement of a substantial holding since August 2013, when it held 29,545,487 of the 576,958,340 shares on issue, or 5.12%.
It spent $2.9 million to buy 680,000 shares on October 10, but shares in SkyCity fell sharply on October 17 after it emerged that the Chinese authorities had detained local employees of SkyCity's Australian rival, Crown Resorts, to crack down on Chinese high-rollers traveling abroad.
On October 24, the Australian Financial Review published an article suggesting SkyCity could merge with the Star Entertainment Group, which operates casinos in Australia, including in Sydney.
From that day, until November 1, Investors Mutual spent a total of $10.78 million on SkyCity shares, including more than $2 million on October 31.
Between October 25 and November 1, SkyCity's share price on the NZX was broadly flat, closing at $3.90 on Octobe. 25 and $3.85 on November 1, levels not seen since October last year.
Shares in SkyCity weredown 1.8% or 7c in trading yesterday to $3.74, underperforming the broader NZX50. The stock has now fallen 13% since the start of the year.
No one from Investors Mutual was available for comment yesterday.
(BusinessDesk)
Staff Reporter
Fri, 04 Nov 2016
Fri, 04 Nov 2016
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Investors Mutual boosts stake in SkyCity on year low share price
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