KEY POINTS:
The latest potential buyer for SkyCity is tipped to be another private equity player. The hotel, casino and cinema operator confirmed yesterday it had received further credible expressions of interests and at least one additional party would be undertaking due diligence.
SkyCity has been in play since September 21 when it received a confidential approach from a party with a potential cash offer which it said would "represent a significant premium to SkyCity's share price at that time".
That party, which is thought to be US private equity firm Texas Pacific Group, has already started due diligence.
Since then, SkyCity and its advisers have been on the look out for further interested parties.
While the firm won't confirm exactly how many parties it is in talks with, or who they are, it has said it will continue to consider expressions of interest and may permit further parties to undertake due diligence.
Sources within the private equity sector have indicated the second bidder is likely to be another private equity player.
US giant Providence Equity Partners, a specialist investor in media, entertainment and communications companies, has previously expressed an interest but last time said it was not the subject of the announcement.
Pacific Equity Partners may also be a potential bidder but is thought to be an unlikely contender for the casino assets and may instead be eyeing SkyCity's cinemas to consolidate its position in the market, following its recent acquisition of Hoyts.
The formal confirmation of a second potential bidder came two days after the NZX called a trading halt on SkyCity's shares over concerns it was trading on an uninformed basis due to market rumours.
That was lifted upon confirmation the company was still compliant with continuous disclosure requirements.
SkyCity downplayed the halt and said it only lasted for 15 minutes.
But market commentators said it was another reminder of the poor handling of the entire bid announcement process.
Both bid announcements have been accompanied by cautions to investors that there is no guarantee the approaches will result in a definite sale and the group is continuing with its restructuring plans, which include the sale of the Adelaide Casino and its cinema chain.
Brook Asset Management fund manager Simon Botherway said it was "not ideal" that the group was trying to sell off its assets at the same time as juggling potential bidders.
"[As a shareholder] you would be upset if a takeover bid fell over because they had sold off the key assets that the bidder was interested in."
SkyCity has also yet to appoint a new chief executive following the the departure of founding CEO Evan Davies earlier this year.
SkyCity shares, which have jumped from $4.32 since before the takeover announcements, closed up 7c at $5.40 yesterday.
