Group Acquires Full Ownership Of Skycity Hamilton

Skycity Entertainment Group Acquires Full Ownership Of Skycity Hamilton

SKYCITY Entertainment Group Limited has reached agreement with interests associated with the Perry Group in Hamilton to acquire the remaining 30 percent shareholding in SKYCITY Hamilton not previously owned by SKYCITY. This follows the acquisition in July last year of Tainui's 15% shareholding in SKYCITY Hamilton.

Following the acquisition SKYCITY will own 100 percent of the shares in SKYCITY Hamilton Limited. SKYCITY already operates the SKYCITY Hamilton business under a management contract.

The purchase price for the Perry shareholding in SKYCITY Hamilton will be $33 million (plus accrued convertible note interest).

SKYCITY will also acquire the front section of the Post Office building on Victoria Street from the Perry interests. This property purchase will provide the opportunity for SKYCITY Hamilton to enhance the front entrance to its gaming and entertainment precinct. The purchase price for the property component will be $4.0 million.

The total acquisition price of $37 million will be paid from SKYCITY's existing financial resources.

SKYCITY Managing Director, Evan Davies, said moving to full ownership of the SKYCITY Hamilton operation was a logical move for SKYCITY.

"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."

"This is a sound commercial decision and one we are confident our shareholders will support."

Mr Davies acknowledged the important partnership between SKYCITY and the Perry family interests during the development and initial operating phases of the Hamilton business.

"SKYCITY Hamilton has provided an exciting entertainment and business facility for the Hamilton/Waikato region and a range of new employment opportunities for a significant number of people."

"The original partners in the venture, Tainui, Perrys and ourselves, can feel justifiably proud of what has been achieved, and we at SKYCITY look to a continuation of the momentum that has been developed into the future," said Mr Davies.

The purchase agreements are conditional on completion of formal documentation, OIC approval and any other regulatory approvals that may be required.

It is expected the transactions will be completed on or about 30 June 2005.

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