SkyCity reckons Hamilton a safe bet

SkyCity says taking full control of the casino in Hamilton is a sound commercial decision. Picture / Amos Chapple

SkyCity has moved to full ownership of the Hamilton casino, acquiring the outstanding shares plus retail and office space in the Waikato city for a total of $37 million.

SkyCity said yesterday it had reached an agreement to acquire Riverside Trust's 30 per cent equity in the casino for $33 million, making it the 100 per cent owner.

"This is a sound commercial decision and one we are confident our shareholders will support," SkyCity managing director Evan Davies said.

"SkyCity Hamilton has performed well since opening and, as the majority shareholder and operator of the business, we were naturally interested in acquiring full ownership."

SkyCity has also agreed to buy six retail properties and office space in Hamilton's Riverside Entertainment complex for $4 million. They will be used for food and beverage operations.

The full cost of the purchases will be funded from existing financial resources. Forsyth Barr analyst Jeremy Simpson said extending SkyCity's stake to full ownership was a "logical and sensible" move for the casino operator.

He said the price paid was probably a bit of a premium, and certainly more expensive than that paid per share when SkyCity bought Tainui's 15 per cent stake last year, but worth it to acquire full ownership.

Noting the company had few avenues left to expand in Australasia, Simpson said its main priority now was to get the Adelaide property to "work better".

The share price showed little reaction yesterday. It opened at $4.12 and the last trades went through at $4.15.

Flutter by the river

* SkyCity Hamilton opened in September 2002.
* It has 339 gaming machines and 23 gaming tables.
* Facilities include a bar, restaurant, private gaming and function room and the SkyCity Hamilton function centre (400 capacity).