Sky City
to Bid on Taverner
As reported by the Bloomberg
News: "Sky City Entertainment Group, New
Zealand's largest casino company, said Thursday
that it would bid for Taverner Hotel Group,
valued at about 300 million Australian dollars,
as curbs on smoking and slot machines limit
earnings at home.
"'The important consideration
for us is that in excess of 60 percent of the
revenue of the business is gaming,' Sky City's
chairman, Rod McGeoch, said in an interview
in Christchurch.
"The Melbourne-based Taverner, which owns
33 hotels and has betting shops and nightclubs,
is a good fit with Sky City's existing businesses,
he said.
"In August, Sky City reported that second-half
earnings growth had stalled because of rules
in New Zealand that include a smoking ban in
casinos and restrictions on currency notes used
in slot machines.
"…Taverner is valued at a minimum
of 300 million Australian dollars (US$228 million)
people familiar with the sale plan said. At
that price, Sky City may seek to fund two-thirds
of the bid with new equity, said Lindsay at
Tyndall…"
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