SkyCity Entertainment Group announced today that it has sold off its remaining 9.2% stake in Gaming Innovation Group (GiG), a leading provider of online gambling solutions. The New Zealand-based casino operator initially acquired a 36.5% stake in GiG back in 2017, but has been gradually reducing its holdings over the past few years.
The sale comes as part of SkyCity’s strategy to focus on its core land-based casino business and reduce its exposure to the online gambling sector. The company has been grappling with the challenges posed by the COVID-19 pandemic, which forced the temporary closure of its properties and severely impacted its revenue and profitability. By divesting its stake in GiG, SkyCity aims to streamline its operations and enhance its financial position.
“We have made the decision to sell our remaining shares in GiG as part of our ongoing efforts to refocus on our core business and strengthen our balance sheet,” said Michael Ahearne, CEO of SkyCity Entertainment Group. “While we continue to see potential in the online gambling market, we believe that our resources are better deployed in our traditional brick-and-mortar casinos.”
The sale of its stake in GiG is expected to generate approximately NZ$30 million in proceeds for SkyCity. The company plans to use the funds to support its capital expenditure program and repay debt. The transaction is subject to regulatory approval and is expected to be completed by the end of the year.
GiG, which is headquartered in Malta and listed on the Oslo Stock Exchange, provides a range of products and services to online gambling operators around the world. The company’s platform powers numerous online casinos and sports betting sites, offering a wide variety of games and betting options to players.
The sale of SkyCity’s stake in GiG marks the end of a successful partnership between the two companies. Over the years, SkyCity has benefited from its investment in GiG, which has enabled it to expand its online presence and reach new audiences. With the sale, SkyCity will now shift its focus back to its core business and seek to drive growth and profitability through its land-based casinos in New Zealand and Australia.
Investors and analysts have reacted positively to the news, with many praising SkyCity for its strategic decision to divest its stake in GiG. The move is expected to generate significant value for shareholders and help SkyCity navigate the challenges of the post-pandemic world.
As SkyCity moves forward with its plans to strengthen its balance sheet and focus on its core business, the company remains committed to providing world-class entertainment and gaming experiences to its customers. With a renewed sense of purpose and a clear strategy in place, SkyCity is well positioned to weather the storm and emerge stronger than ever.