SkyCity Entertainment Group is preparing to formally seek buyers for SkyCity Adelaide after receiving interest from potential purchasers during a strategic review of the Australian casino.

The company said in a September 30 filing that UBS will manage the sale process and seek proposals from parties that have already expressed interest as well as other potential bidders. SkyCity announced the Adelaide review in August as part of a broader examination of its assets and ownership structure.

“SkyCity has received inquiries from credible interested parties in that asset,” the company stated.

The sale process will run alongside other measures intended to increase shareholder value, including further asset disposals and discussions involving possible transactions at group level.

“The Board continues to believe that the current share price and previously disclosed approaches do not fully reflect the underlying value of the SkyCity Group,” it said.

Adelaide Review Moves to Sale Process

SkyCity decided to move beyond the initial strategic review after receiving interest in the Adelaide business.

UBS will approach existing interested parties and other potential buyers as part of the formal process. At the same time, SkyCity is progressing negotiations with South Australia’s Consumer and Business Services over outstanding regulatory matters connected to the independent review of its Adelaide operations.

Those discussions are described as well advanced, with the parties working toward a binding agreement.

The company has not indicated whether the Adelaide process will ultimately result in a transaction.

‘There is no certainty that this process will result in any transaction or other outcome,’ the filing cautioned.

SkyCity has also appointed UBS and Chapman Tripp to assist with a separate structured review of possible transactions involving the wider group.

Takeover Talks Continue

The company remains in discussions with the two parties that made unsolicited takeover approaches earlier this year.

SkyCity disclosed the proposals in August and rejected both, saying the terms failed to reflect the underlying value of the group and included conditions the board considered problematic.

According to Inside Asian Gaming, neither party has submitted an improved proposal, although SkyCity continues to engage with both while considering other opportunities.

“SkyCity continues to make good progress on key strategic initiatives as outlined further below. The non-binding indicative proposals received earlier in the year have not resulted in improved proposals. Alongside the existing strategy, the Board intends to now also evaluate a range of potential opportunities under a structured process, including engagement with interested parties.”

The board’s wider review therefore covers more than the Adelaide casino and allows SkyCity to consider other potential transactions across the group.

The company has already completed the sale of commercial properties in Auckland for NZ 74.5 million, or about US 42 million. It is also in advanced and exclusive negotiations to sell The Grand Hotel, with a binding agreement expected shortly.

Cost Reductions Remain on Track

SkyCity is continuing a group-wide operating reset alongside its asset review.

The company has cut more than 200 corporate roles in New Zealand and is now focusing the next stage of its cost-reduction program on external spending.

It expects NZ30 million, approximately US17 million, in benefits during FY27. The target rises to NZ70 million, around US39.5 million, in FY28.

Underlying first-quarter performance remained in line with previous guidance, while progress on cost reductions was ahead of expectations.

SkyCity plans to provide a further trading update at its annual shareholders’ meeting on October 21.