Sky City eyeing 33-pub Taverner Hotel Group

Sky City Entertainment Group is said to be looking at buying the Taverner Hotel Group.

Paul Robertshawe, portfolio manager at Tower Asset Management, says it is a "distinct possibility" that Sky City is mulling over the A$350 million Australian asset.
In the past, Sky City has been quick to squash rumours that it was looking to expand.

Yesterday, the company would neither confirm nor deny that it was looking at Taverner.

"I can only say what's in the prospectus, which is we're conducting due diligence on a possible acquisition," said Paul Gregory, media relations manager for Sky City.

In a lengthy prospectus for a new Australian-based debt security, Sky City Entertainment Group said it was looking at a potential acquisition.

Through the ACES (adjustable coupon exchange securities) offer, Sky City will raise A$150 million.

The company said it would fund an acquisition through separate funding arrangements.

Earlier this week, a research note from an ABN Amro analyst also said Sky City was looking at Taverner.

Taverner owns 33 hotels with 2000 poker machines. The properties are in Victoria, New South Wales and South Australia. The company had annual sales of A$250 million.