Leading Australasia casino group Sky City has just announced plans to increase the company’s exposure to the Christchurch casino market. The group is using proceeds raised from the sale of a stake in a nearby hotel to fund the move, with NZ$61.5 to ‘play with’. The move marks a dramatic turnaround in the affairs of the group after a period during which the future was not too rosy. So what next?
At a time when many in the sector are struggling to raise finance for an array of new developments, the sale of the hotel stake puts Sky City in a very strong position. Part of the funds raised is being used to increase the company’s stake in Christchurch Casino Ltd from 41 per cent to 46 per cent. This is all part of a reorganisation of Christchurch Casino Ltd, which has seen a number of investors looking to bail out of the venture.
The cost of increasing the stake in Christchurch Casino Ltd is far less than the money raised from the hotel stake sale and leaves Sky City with plenty of room for manoeuvre should anymore interesting opportunities arise in the short term.
Leading Australasia casino group Sky City has just announced plans to increase the company’s exposure to the Christchurch casino market. The group is using proceeds raised from the sale of a stake in a nearby hotel to fund the move, with NZ$61.5 to ‘play with’. The move marks a dramatic turnaround in the affairs of the group after a period during which the future was not too rosy. So what next?