SKC - Sky City

[Snoopy]

Rumours of an Australian takeover bid for SKC.

http://www.nzherald.co.nz/business/n...ectid=11607909

Hands off 'Sky City', 'Star Entertainment Group'! The casinos you operate in Australia are just horrible compared to what Sky City do here from NZ. We need your management expertise for 'Sky City' like a hole in the head. Long suffering 'Sky City' shareholders have backed the Adelaide Casino over many lean years. And now, just when the redevelopment plan aligns with more equitable South Australian government regulations, you want to take that hard won improvement away from the shareholders who backed it? I for one will not be selling out, should an offer from Star emerge!

Except, I suppose, evey mutt has a level in their supper dish that can't be ignored. I still remember when Nigel Morrison took over at Sky City. Nige mentioned his goal was to to get to the share price to $10. Is a Star takeover the way to fulfill this promise? Ten bucks Nige, is what it will take for my moral stand to be distracted enough, so that I go the way of my bulging supper dish.

SNOOPY

[winner69]

SKC market cap $2.9 billion and debt of $0.7 bilion

Say 20% premium to take over and one needs $4.1 billion

Annual operating cash flow (before capex) say $0.3 billion plus maybe a bit more

A 7% return might be attractive for lie minded suitors who never seem too worried about loads of debt and paying over the odds.

And our government prob happy to allow Aussie rogues to take over the NZ licences,

[Big Blind]

Nigel Morrison stepping down at the end of the month. Was just contemplating buying some more this morning.

https://www.nzx.com/files/attachments/233341.pdf

[777]

Market didn't like it. Down 4%.

[Mickey]

2.8M shares already traded this morning - it'll be interesting to see where it goes today

[777]

Market really doesn't like it.

I see a teleconference is being arranged with analysts, institutional investors and fund managers.

[Snoopy]

Why not a rights issue for expansion plans like any other company? Nigel Morrison or oliver twist?

Nigel Morrison has gone. Not sure if Oliver Twist will be the new CEO. But the board has heard you Tim.

A 1:10 rights issue at $4.40. Ostensibly this rights issue is becasue Sky City have decided not to sell their new downtown hotel after all. Or maybe the sharemarket has reached such a level that tapping the market for new capital, for what I think is quite a high price in historical terms, was just a no brainer.

I won't be playing the roulette wheel to celebrate. But I'll be taking up my rights. I have found in the past that backing my favourite number '00' is the most rewarding way to go gambling.

SNOOPY

PS Am a little disappointed to see that although institutional investors and retail investors are being offered shares on the same terms, any undersubscription my retail investors will be offered to institutions. IOW we retail investors can't oversubscribe, but the big boys can.

[stevevai1983]

Nigel Morrison has gone. Not sure if Oliver Twist will be the new CEO. But the board has heard you Tim.

A 1:10 rights issue at $4.40. Ostensibly this rights issue is becasue Sky City have decided not to sell their new downtown hotel after all. Or maybe the sharemarket has reached such a level that tapping the market for new capital, for what I think is quite a high price in historical terms, was just a no brainer.

I won't be playing the roulette wheel to celebrate. But I'll be taking up my rights. I have found in the past that backing my favourite number '00' is the most rewarding way to go gambling.

SNOOPY

PS Am a little disappointed to see that although institutional investors and retail investors are being offered shares on the same terms, any undersubscription my retail investors will be offered to institutions. IOW we retail investors can't oversubscribe, but the big boys can.

Hi Snoopy, how to participate this? The record date is 16May.
I am living oversea atm.

[Snoopy]

Hi Snoopy, how to participate this? The record date is 16May.
I am living oversea atm.

Have a look here Steve

https://www.nzx.com/companies/SKC/announcements/282159

As long as you have a registered address in NZ or Oz you should be OK. This from p7 of the offer document.

"Alternatively, Applications may be made by Eligible Retail Shareholders online at www.skycityshareoffer.co.nz without the requirement to complete the Entitlement and Acceptance Form."

So if you have internet access, you should be OK. You have until June 2nd to get your money in.

SNOOPY

[stevevai1983]

thank you Snoopy
I lived in oversea for 3 years now but i have NZ registered address.