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SkyCity Entertainment Group has disclosed that it received and rejected two unsolicited takeover proposals in May 2026, the higher of which valued the New Zealand casino operator at NZ$827.3 million.
A fund managed by Oaktree Capital Management offered NZ$0.70 per share, valuing SkyCity at NZ$772.1 million across its 1.10 billion shares on issue. A second party, which SkyCity did not name, offered NZ$0.75 per share. Both proposals were confidential, unsolicited, conditional and non-binding.
The board “unanimously determined that the proposals did not adequately reflect the underlying value of the company, and that the conditions were problematic”, according to the company. SkyCity made the disclosure on 25 August, after media reports of discussions with Oaktree.
The conditions the board objected to
Both proposals required a minimum of eight weeks of due diligence, debt financing arrangements, agreement on binding documentation, unanimous board support, shareholder approval, regulatory clearances and internal approvals from the acquirer. Both parties also asked for exclusivity and for restrictions on SkyCity monetising assets or changing its debt facilities.
That last condition cuts across the programme SkyCity is running now. The company is selling property to reduce debt, and a standstill would have paused those sales for the length of an exclusive due diligence period with no binding offer at the end of it.
FY26 earnings fell as carded play took effect
SkyCity reported revenue of NZ$878.9 million for the year to 30 June 2026, up 6.5%. On an underlying basis, revenue was NZ$822.7 million, down 0.3%.
Underlying EBITDA fell 22.3% to NZ$181.6 million. Reported net profit after tax fell 37.6% to NZ$18.2 million, and underlying net profit fell 46.9% to NZ$38 million.
Gaming revenue declined 5.9%. SkyCity attributed the fall to the rollout of mandatory carded play, weaker premium play and lower visitation in the fourth quarter. Non-gaming revenue rose 13.4%, helped by the New Zealand International Convention Centre, which opened in February 2026.
SkyCity Auckland underlying EBITDA was NZ$179.8 million, down 14.2%. Hamilton and Queenstown together produced NZ$31.4 million, down 6.6%. Adelaide underlying EBITDA was A$19.5 million, down 31.5%, and the property is subject to a strategic review in FY27.
No dividend was declared. Net debt fell to NZ$590.7 million from NZ$756.8 million, with covenant leverage at 3.1x and available liquidity of NZ$185.9 million.
Asset sales and the online licence round
The asset monetisation programme targets NZ$275 million to NZ$300 million in gross proceeds by December 2026. Sales of commercial property at 99 Albert Street and Victoria Street in Auckland account for NZ$74.5 million and are due to settle in September 2026. SkyCity has signed a non-binding heads of agreement for the sale of The Grand Hotel, with due diligence underway.
The proceeds target is worth around a third of what the higher of the two rejected offers put on the whole company.
SkyCity is also preparing for New Zealand’s online casino regime, which is capped at 15 online casino licences. The licence auction is scheduled for September 2026 and SkyCity expects to enter the market in June 2027, describing its approach as staged and disciplined. Competing bidders include Entain, which is targeting three licences. SkyCity separately faces a funded class action over the lawfulness of its existing online casino operation.
Where the shares sit
SkyCity shares traded at NZ$0.68 on the NZX on 25 August, up 1.5%. The ASX listing was unchanged at A$0.56. Both rejected offers were priced above the current NZX level.
Neither party submitted a revised proposal after SkyCity indicated it would engage on improved terms. The company said it remains open to proposals that address its concerns on value and conditionality.
Source: SkyCity Entertainment Group NZX announcement, 25 August 2026
