KEY POINTS:
SkyCity's directors will go into the board's annual meeting today without a bid on the table after its one remaining interested party failed to meet the firm's deadline.
The casino and hotel operator had hoped to hear back from all interested parties before today to enable it to discuss the proposal and decide whether to take it to a shareholder vote.
But yesterday SkyCity informed the market it had received a letter advising it that the interested party had completed due diligence and was still "highly interested in pursuing a transaction" but was not yet in a position to make an offer.
The party, which is thought to be US private equity firm TPG, has said it remains "highly optimistic of securing suitable financing in the very near term" and remains hopeful of being able to provide a "compelling offer" as soon as possible.
The delay is understood to have been compounded by increasing difficulties for private equity firms to raise money following the credit crunch in the US and suggests that if the firm does manage to get finance its offer may be at the low end of the scale.
SkyCity acting CEO Elmar Toime said the interested party had not given any indication of how long it might take to get finance but SkyCity would continue to engage with the party.
Toime said the board had also made it clear that it was not waiting around for the bid to come in.
"We are pushing ahead on all fronts. We didn't solicit any offers. They can and will do what is appropriate - the timing is in their hands.
"If and when they come back the obligation is on the board to assess the offer and make the decision to take it to shareholders. It's not about waiting. We are going to go ahead and make the decisions we need to make. None of that is influencing our decisions."
Toime said the board and management continued to work on the strategic and business plans for the company, including the appointment of a new CEO, which he said was progressing well.
The board is understood to have narrowed the selection down to one person and is currently in negotiations. Toime said it was still on track to make an announcement by December but it would depend on how long the negotiating process took.
But yesterday's announcement came under heavy criticism from Brook Asset Management director Paul Glass. "They have handled it pretty poorly - it seems crazy to allow a company to do due diligence without checking to ensure they have the financial backing to go ahead with the deal."
Glass said it was just the latest in a long history of disappointment from the board. He called for the board to be refreshed starting with the replacement of chairman Rod McGeoch. "These are very good quality assets and a good business that has been poorly managed by the board."
Shares in SkyCity closed down 10c at $4.85 yesterday.
