SKC - Sky City

[macduffy]

SKC appoints new CEO.

http://www.nzherald.co.nz/business/n...ectid=11743529

[NZSilver]

Interesting times for SKC, more info out to day re star looking at merger/takeover. Noticed some large trades today

[Bjauck]

Interesting times for SKC, more info out to day re star looking at merger/takeover. Noticed some large trades today

Another NZ Share market listed investment about to disappear? NZ is running out of government assets left to boost the local share market. NZ household wealth will end up even more dependent on expensive residential property.

[Master98]

http://www.theaustralian.com.au/busi...8fce8dc158752e

Investment bank Macquarie Capital and advisory firm Flagstaff are understood to be in the corner of The Star Entertainment Group nutting out the options for a potential merger with its New Zealand-based rival Skycity Entertainment Group, which is taking advice from Credit Suisse-First NZ Capital, according to sources.

The banks are believed to be weighing various options for a tie-up or takeover deal between the two groups, which could create a newly merged $7 billion casino operator.
The latest takeover talk about the two companies follows a recent agreed $11.3bn merger between Australian-listed gaming and wagering heavyweights Tabcorp and Tatts Group, which is on track to be finalised next year subject to approval from the Australian Competition & Consumer Commission.
Investment banks are working behind the scenes for the two casino operators Skycity and The Star as tensions escalate at Skycity between investors and the company’s board.
Plans are afoot by a group of Skycity investors, believed to be Perpetual, Masco Capital and Investors Mutual, to call an extraordinary general meeting in an effort to oust chairman Chris Moller, who fund managers say is refusing to properly engage with Star Entertainment chairman John O’Neill about the prospect of a merger between the two companies.
Bad blood is believed to exist between Mr Moller and Mr O’Neill from negotiations over the hosting of the Rugby World Cup more than a decade ago.
Mr Moller at the time was chief executive of the New Zealand Rugby Union, while Mr O’Neill was CEO of the Australian Rugby Union.
At the time, New Zealand missed out on hosting the event due to a contractual dispute over ground signage rights.
Another point of contention is that the group embarked on an equity raising to fund its developments, rather than divesting assets within its property portfolio.
Sources yesterday said some members of The Star’s board were lobbying for a merger to occur, but the company’s Malaysian shareholder Genting, which controls 6.6 per cent of the company according to Bloomberg, is reluctant for a deal to proceed.
Other major shareholders are in favour of a merger, and it is understood chief executive Matt Bekier has told investors he would be in favour of an acquisition of Skycity, subject to the right price.
One view is that both parties may also face regulatory hurdles over a deal proceeding.
Mr Moller has been meeting with Sky shareholders this week.
Skycity and The Star Entertainment have been in merger talks before and The Star’s performance has strongly improved since that time.
However, buying Skycity could currently be a tough ask for the Star Entertainment business.

[winner69]

Are you guys hoping for a takeover / merger?

[Master98]

Are you guys hoping for a takeover / merger?

takeover with good price

[winner69]

takeover with good price

A good price would mean $3.5-$4.0 billion needed by Star for current ebitda of $0.3billion (see earlier post)

The last sentence from the bit from The Australian - However, buying Skycity could currently be a tough ask for the Star Entertainment business.

But then when egotistical casino operators start gambling with other peoples money anything can happen eh?

[NZSilver]

Running hot this morning, should see $4+

A solid underlying business with good div. Recent sell off has created plenty of value. Back in an uptrend now after share price fell following IB issues bad publicity re crowns troubles in china.

[macduffy]

Headline in the AFR Markets section, two minutes ago:

"Star, Perpetual, hose down hopes of a merger with Sky City....."

Anyone with access to this?

[Bjauck]

A good price would mean $3.5-$4.0 billion needed by Star for current ebitda of $0.3billion (see earlier post)

The last sentence from the bit from The Australian - However, buying Skycity could currently be a tough ask for the Star Entertainment business.

But then when egotistical casino operators start gambling with other peoples money anything can happen eh?

NZ investors have had past experience with other NZ companies, who did not operate casinos, gambling with their money. One of the reasons why so many Kiwis stay away from financial investments and stick their money into land.