Skycity go ahead for Christchurch and Queenstown casinos
Listed Skycity has obtained permission to buy the stakes in Christchurch and Queenstown held by Skyline Enterprises, which says it knows nothing about the deal.
Listed Skycity has obtained permission to buy the stakes in Christchurch and Queenstown held by Skyline Enterprises, which says it knows nothing about the deal.
Skycity has obtained permission of the Overseas Investment Office to buy the remaining stakes in Christchurch and Queenstown Casinos from Skyline Enterprises.
But the chairman of Skyline, Barry Thomas, told NBR he knew nothing about it and had not been in negotiations with Skycity.
”There’s been no sale agreement. It’s news to me,” Mr Thomas said.
The Overseas Investment Office values the assets at $246 million.
The rationale provided by Skycity is that “the Investment simplifies the ownership structures of the Christchurch and Queenstown casinos. Being part of the Skycity group of companies will enable the full management expertise of Skycity Entertainment Group as a casino operator to be made available to Christchurch Casinos and Queenstown Casinos”.
Mr Thomas said the Christchurch Casino remained closed for repairs and is within the closed cordon due to the February earthquake. Opening would be some weeks or months away.
Previously, Mr Thomas and Skyline and have rejected Skycity’s overtures for the shares prompting a boardroom battle for control.
Skyline Enterprises, which controls 41% in the Christchurch Casino, opposed proposed Skycity's purchase and Mr Thomas refused to cooperate over due diligence. He had objected to the Skycity purchase because it would deliver control of five out of six casinos in this country. However, the proposal was approved by the Casino Control Authority and the Commerce Commission.