Private consortium most likely buyer for SkyCity's Darwin business – report
Information memoranda are circulating in the market.
Hot Topic
Hawke’s Bay
Investment bank Goldman Sachs is targeting high-powered wealthy families as possible buyers of SkyCity’s Darwin casino and hotel in an attempt to secure an acceptable price, according to an Australian media report.
The NZX-listed company has been reviewing options for the Darwin business since October. In February it said there was no urgent time pressure, “given the property is profitable and cash generative.”
Information memoranda are circulating in the market and it is understood SkyCity wants at least $A200 million for the Darwin business, which has 600 electronic gaming machines, 43 tables and 152 hotel rooms.
The Australian newspaper quoted sources saying it seems unlikely another casino operator will buy the business and it’s more likely for a private consortium to make a bid.
SkyCity bought the Darwin casino and hotel business from US-based MGM Mirage in 2004 for $A195m ($230.6m) including costs and taxes, as part of its Australian expansion following its purchase of Adelaide casino.
Last year the company wrote down this investment by $A95m to $A195m after the business was hurt by increased rivalry from gaming machines in local pubs and clubs over the past two years.
In the first six months of 2016 the Darwin business generated $20.2m in earnings before interest, tax, depreciation and amortisation and about $71.4m in revenue.
Duncan Bridgeman
Fri, 20 Apr 2018
Fri, 20 Apr 2018
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Private consortium most likely buyer for SkyCity's Darwin business – report
74567