Australia’s Star Entertainment Group is understood to be working out the options for a potential merger with New Zealand’s SkyCity Entertainment Group, according to sources quoted by The Australian.
“It is understood that Star Entertainment Group's chief executive, Matt Bekier, has expressed his willingness to embark on a merger with the rival casino operator across the Tasman, subject to price,” reported the news outlet.
It is understood the Australian casino operator is working out the options with investment bank Macquarie Capital and advisory firm Flagstaff. The merger of the two groups could create a A$7bn casino operator.
However, talk of a possible takeover of SkyCity has raised concerns from New Zealand investors. Shane Solly, a portfolio manager of Harbour Asset Management in Auckland expressed concern over the news.
“New Zealand investors are in no hurry to see another New Zealand company taken over and removed from the New Zealand market,” Solly told the New Zealand Herald. “We want to support well-run businesses in New Zealand. We would like to see SkyCity improve its underlying performance. We have got a market with a shortage of good businesses and we want more good businesses to invest into.”
Source: Asia Gaming Brief
