SkyCity sells off shares in GiG
The proceeds from the sales, approximately NZ$55m (US$33m), will be used to pay down debts as part of capital management plans.
SkyCity Entertainment Group will sell off its entire 10% shareholding in Gaming Innovation Group (GiG). The net proceeds from said sale will amount up to NZ$55m (US$33m), after deducting legal costs and brokerage fees.
SkyCity has been advised to “enter into an unconditional agreement” to sell off all its shares in the European-based online gaming platform and service provider.
The shares had not been part of the group’s core operations and thus “not considered strategically necessary.” The proceeds from the sales will be used to pay off existing debts, as part of the group’s plans in capital management.
SkyCity, however, maintained that the relationship with GiG remain valuable through the operation of SkyCity Online Casino in Malta. SkyCity had initially acquired the shares in GiG in April 2022 with approximately NZ$40m.
SkyCity Casino Management came under fire when it was found to have breached the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009 during its operations between 2018 and 2023.
SkyCity Adelaide was also under investigation by AUSTRAC for ‘serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws.’ It was later fined AU$67m by the Federal Court as further investigations resume.
The legal cases and fines have definitely placed the group under some stress, which necessitate adjustments, especially in its capital management.
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