Sky City ups stake in Hamilton casino

11.15am

Sky City Entertainment is raising its stake in Riverside Casino Ltd to 70 per cent.

Sky City is buying a 15 per cent holding from Tainui Group Holdings Limited (TGL), increasing its stake in the Hamilton-based casino from 55 per cent to 70 per cent.

Hamilton's Perry Developments holds the remaining 30 per cent.

Sky City will pay $10.5 million, plus accrued convertible note interest, for the stake.

The offer is conditional on approval from the Overseas Investment Commission and the Casino Control Authority.

The effective date of the transaction will be 30 April 2004.

Sky City said the purchase will be funded from existing financial resources.

Sky City is also seeking to buy a 40.5 per cent stake in the Christchurch Casino and is in the throes of a $14.3 million takeover bid for the 26 per cent it does not already own of its cinema subsidiary Sky City Leisure.

Sky City Entertainment's shares last traded last night at $4.44, having traded between $3.90 and $4.78 over the past 12 months.

- NZPA