SkyCity rejects NZ$0.75 conditional takeover proposals

• SkyCity Entertainment Group rejected two unsolicited, non-binding takeover proposals priced at 70 and 75 NZ cents per share.
• The board determined the conditional offers undervalued the business, and the company's stock price subsequently increased.
• The company stated it will proceed with its asset monetisation programme expected to deliver NZ$275–NZ$300 million.

SkyCity Entertainment Group (ASX:SKC) declined two takeover proposals up to NZ$0.75 per share that undervalued the business.

Oaktree Capital Management submitted a NZ$0.070 per share proposal in May alongside a competing NZ$0.75 bid.

Both offers required an eight-week due diligence period and imposed strict structural conditions.

The company stated that its ongoing asset monetisation programme is expected to deliver NZ$275–NZ$300 million.

Following the announcement, the SkyCity share price was up at $0.56.

Management is progressing the unconditional sale of two investment properties for NZ$74.5 million.

The business is also advancing a non-binding heads of agreement to sell the Grand Hotel.