SkyCity Entertainment Group has announced its plans to sell its 11.6 percent stake in online gaming company Gaming Innovation Group (GiG) for a whopping $55 million, according to a report by Radio New Zealand (RNZ).
The decision to sell the stake comes as part of SkyCity’s strategic review of its investments to ensure that it is maximizing shareholder value. The New Zealand-based casino operator had acquired its stake in GiG back in 2016 as part of a joint venture agreement to launch an online gambling platform in the country.
According to RNZ, SkyCity’s Chief Executive Graeme Stephens said in a statement that the sale of the stake in GiG was a part of the company’s ongoing process to assess its investments and focus on opportunities that align with its long-term growth strategy. Stephens added that the proceeds from the sale will be used to reduce debt and strengthen SkyCity’s balance sheet.
The decision to sell the stake in GiG comes at a time when the online gaming industry is experiencing significant growth, with revenues expected to reach $1 trillion globally by 2021. Despite this growth, SkyCity has been facing challenges in the online gaming sector, with its joint venture with GiG failing to meet expectations.
In a separate statement, GiG also confirmed the sale of SkyCity’s stake in the company, stating that the transaction was part of SkyCity’s strategy to streamline its investments and focus on its core operations.
The sale of the stake in GiG represents a significant move for SkyCity, as it continues to adapt to the changing landscape of the gaming industry. The decision to sell the stake for $55 million highlights SkyCity’s commitment to maximizing shareholder value and positioning itself for long-term success in the competitive gaming market.
Overall, the sale of SkyCity’s stake in GiG is a strategic move that could potentially benefit the company in the long run, as it looks to focus on its core operations and capitalize on new growth opportunities in the gaming industry. With the proceeds from the sale being used to reduce debt and strengthen its balance sheet, SkyCity is well-positioned to navigate the evolving gaming landscape and drive sustainable growth in the years to come.