|New Zealandís largest casino company, Sky City Entertainment Group Ltd., have let it be known that they will be acquiring Sky City Leisure Ltd. The Entertainment group already owned 74 percent of Sky City Leisure, a NZ based cinema group, but will now own 95.8 percent of the cinema groupís shares.|
As Sky City is limited by legislation from opening any new casinos, as well as expanding its existing sites, the company is looking to other avenues in order to expand the company. As well as this recent purchase, Sky City is also pursuing purchasing casinos in Australia. They also hope to start investing in internet gaming sites, and gaining stakes in rival casinos in New Zealand.
The entertainment group will now seek to gain the balance of the shares in the cinema group by compulsory acquisition. Managing Director, Evan Davies has explained the purchase by releasing the following statement: 'The decision to acquire the remaining equity in Leisure will enable the ownership and management structure to be streamlined, reducing the corporate and compliance costs of the business, and allowing for future growth.'
'Our offer was found to be fair by independent assessors, and was recommended by the independent directors of SKYCITY Leisure. The offer was made with a view to providing minority investors with the opportunity to sell their equity at a fair price.'