SkyCity Entertainment Group has entered into an unconditional agreement to sell its entire shareholding in Gaming Innovation Group.
After brokerage and legal costs, the casino operator’s shareholding of around 10 per cent in the online gaming provider and media services operator is expected to generate net proceeds of approximately NZ$55m (€31m).
SkyCity noted that it intends to use the sale’s proceeds to “pay down debt as part of its ongoing prudent approach to capital management”.
Acquiring the shareholding in April 2022 for €25m (approximately NZ$40m at the time), the casino operator explained that it has divested in GiG because the shareholding is “non-core to its ongoing operations and is now not considered strategically necessary”.
However, SkyCity added that it continues to have a “valuable relationship” with GiG through its involvement with SkyCity Online Casino.
SkyCity’s divestment comes as GiG officially launches the split of the company into two separate entities, GiG Media and Platform & Sportsbook, with the former being rebranded as Gentoo Media.
