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NZ Sky City Buys Into Canbet20 July 2000WELLINGTON, NEW ZEALAND – July 20, 2000 – As reported by Dow Jones: "Sky City Ltd. (A.SKY), a New Zealand-based casino and hotel concern, is to boost its Australian gambling operations with Thursday's announcement that it intends to buy a 33% share in Canbet Ltd. for A$39.1 million. "…Canbet is a fully operational, government licensed Internet-based bookmaking company based in Canberra, Australia, which listed on the Australian Stock Exchange in December 1996. "…Sky City's initial payment A$5 million will be in August 2000, while the first tranche of the second A$34.1 million payment will be made in October 2000 with the second tranche payment by October 2001. "…Sky City Managing Director Evan Davies said the proposed investment in Canbet is a logical extension of Sky City's Australasian growth strategy and allows the company to take an equity position in an established online wagering operation `with potential for significant profitability in the near term.' "Sky City completed the purchase of the Adelaide Casino in Australia on July 1. "…The Adelaide Casino comprises a gaming area of 71 tables and more than 760 gaming machines, several restaurants, bars, and function rooms. It employs a staff of approximately 900. In South Australia, the Adelaide casino has a monopoly until 2015. "…`In Australia they're all monopoly (situation) casinos, and here (in New Zealand) it looks increasingly unlikely they'll be able to get approval for another casino,' [ABN-AMRO Equities NZ Ltd. analyst Jeremy Simpson] said. Sky City will open its Queenstown casino "…If the purchase goes ahead as anticipated, Sky City will own 33% of Canbet; Cullen Investments, associated with Auckland-based businessman Eric Watson, and other strategic holders 33%; with the remaining third held by the public." |