Rumours swirled this morning that Oaktree Capital Management was running a ruler over gaming/hospitality play SkyCity Entertainment (SKC AU).
In response to media speculation, SkyCity announced it had received two NBIOs in May: one at NZ$0.70/share from Oaktree; and one at NZ$0.75/share from “another party”.
The AFR reckons the mystery buyer is Sam Arnaout’s Iris Capital, the owner of Casino Canberra and Alice Spring’s Lasseters Hotel Casino. SkyCity rejected both Offers.
The Trade:
Both NBIOs were pitched around a life-time low share price for SkyCity.
SkyCity’s monetisation priorities appear sound.
I would not be a seller here. But it’s not a pound the table buy either.