Skycity opens share offer
Casino and entertainment company Skycity Entertainment Group has begun raising
$50 million from retail shareholders in response to the disruption caused by the fight against Covid-19.
Westpac has reported online gambling spending was strong during the Covid-19 lockdown in March, April and May, but the closure of Skycity’s casinos, including in Auckland and Hamilton, hit the company’s revenue hard.
‘‘Over the past few months, Skycity has faced challenges which have impacted the business and operations, particularly the disruption caused by Covid-19,’’ chairman Rob Campbell said in a letter to shareholders.
‘‘Despite encouraging trading since reopening in New Zealand, the outlook remains uncertain as we adjust to new social and economic settings.’’
The Skycity board had resolved to strengthen the company’s balance sheet to protect against the prospect of a slower or more protracted recovery, Campbell said.
‘‘The equity raising will ensure that Skycity remains appropriately capitalised and provides certainty to allow for the delivery of the strategic plan for the business,’’ he said.
Applications for new shares from existing shareholders would close on July 3. The $50m share offer was part of a $230m equity raising announced on June 17.
Already fundmanagers and pension funds had signed up to buy $180m of new shares.
The Covid-19 lockdown also set back the expected completion date of the New Zealand International Convention Centre, which was damaged by fire in October last year.
Fletcher Construction recommenced work in late April, but the lockdown was recognised as a ‘‘force majeure’’ event and the date at which the centre must be completed was pushed out until January 2025.
Also under way was a project to revitalise Skycity’s Adelaide casino and entertainment complex.