KEY POINTS:
Sky City, under fire for the bizarre way it disclosed a takeover approach last month, was this week attempting a charm offensive with the media.
Buried in an announcement about its profit distribution plan, the casino company said in a by-the-way manner it had received a takeover approach at a significant premium to the prevailing price.
Sky's share price, which has languished well behind the market in recent years, shot up 27 per cent within an hour.
Caretaker chief executive Elmar Toime, former head of both the New Zealand and British postal services, may not have been fully aware of the consequences of such announcements, but it admitted in an interview that the release had been poorly executed.
Sky approached the media this week to let journalists know the company has not given up just because a takeover was in the offing.
Mr Toime said he had told staff: "It's business as unusual (correct)."
"We all know what we have to do so, let's get on and do it."
He said the company knew it had to generate more cash and improve the customer experience.
Sky shares had been on an steep upward path from when it listed in early 1995 until June 2003, but since had lagged the market as tighter gaming regulations, anti-smoking legislation and dubious expansion in Australia took their toll.
Long-standing ceo Evan Davies fell on his sword in June, accepting the wrath of the market for the lacklustre performance of the casinos he engineered the purchase of in Australia and New Zealand.
Sky's Adelaide casino has been put on the block, and with a new ceo yet to be appointed and the somewhat vague proposal of a takeover hanging over it, it's little wonder questions about direction are being asked.
There are definitely no acquisitions in the works, Mr Toime said.
It was time for a "short consolidation".
"Consolidation is a legitimate activity in a business that's been growing very quickly."
He said he had taken a fundamental look at all assets to ensure they were fine-tuned for best performance.
"It doesn't mean cruise control."
New finance and marketing teams had a swag of new ideas.
"They are taking a look at fundamental new research about the business. There's room for improvement in all of the businesses."
Mr Toime said the appointment of a new CEO was moving in parallel with the takeover process and he admitted the timing of an appointment could be affected.
A short list had been created but he said the board did not want to slow the selection process.
People would find out more about the takeover "when there is something meaningful to say about it".
Although only one party, rumoured to be private equity firm TPG, was doing due diligence, Mr Toime said the process would be opened to all.
"The interest is there, whether the timing is right, or people have the wherewithal is the great unknown," he said.
Asked why anyone would buy Sky shares, if there was no takeover in offing, he said: "That's a fair question."
Whether there was growth in its core assets depended on Sky's ability to generate more visits from people with a propensity to spend.
Better service and a wider range of entertainment had to be offered.
"Tons of new ideas and opportunities are emerging.
"I can't point to numbers about that right now."
Sky shares, which have jumped from $4.32 before the takeover announcement, were down 3 cents to $5.33 today.
- NZPA
