Queenstown-based Skyline Enterprises has rebuffed a bid by dual-listed casino operator SkyCity Entertainment Group for its 50% share in the Christchurch casino.
In a statement to the stock exchange yesterday, confirming market speculation this week a bid was on the table, Sky City confirmed it had made a cash offer to Skyline Enterprises - which has been rejected.
Shares in tourism operator Skyline trade on the unregistered securities trading platform Unlisted.
Skyline chairman Ken Matthews did not return calls yesterday.
Craigs Investment Partners broker Peter McIntyre expected the SkyCity bid would have to offer a premium on any valuation "of more than $120 million", given SkyCity would gain 100% control.
SkyCity had purchased an initial 40.5% stake in Christchurch Casino Ltd in 2004 for $93.7 million; a further 5.2% stake in 2008 and a share in the 8.6% Southern Equities interest.
"Christchurch has good growth potential, being well-positioned to reap the benefits of tourism from Australia and Asia," Mr McIntyre said.
Details were scant in the statement by SkyCity's company secretary Peter Treacy, saying the company was aware there had been discussion and uncertainty as to whether it had made a proposal to Skyline Enterprises to acquire the 50% interest in Christchurch Casino which SkyCity does not hold.
"SkyCity wishes to confirm that it has advised Skyline Enterprises of a cash offer that it is willing to make for its interest in Christchurch Casino. The board of Skyline Enterprises has rejected Sky City's approach," Mr Treacy said.
In October, the pair bought back an 8.6% stake of Invercargill businessman Louis Crimp's Southern Equities, to share an equal 50:50 stake in Christchurch Casino Ltd.
According to the Overseas Investment Office, Christchurch Casinos has a total value of $220 million, raising speculation Sky City had offered Skyline up to $110 million.
