Sky City managing director Evan Davies says the company's balance sheet is appropriately structured
5 April 2004
Auckland's Skytower
Sky City says it can well afford its planned $94 million stake in Christchurch's casino.
The Australasian entertainment and casino operator has agreed to buy Aspinall NZ Limited's 41 percent share of the business, subject to regulatory approvals.
Sky City was criticised when it funded its recent purchase of the Darwin casino through bank debt.
Managing director Evan Davies says it is funding Christchurch the same way, and shareholders have no cause for concern.
He says the company believes its balance sheet is appropriately structured.
The Government's curb on casinos means the only way Sky City can grow in the area is through acquisitions.
Sky City says, meanwhile, it has had a happy relationship with its potential new Christchurch casino partner up till now, and likes to think that can continue.
Christchurch Casino chairman Barry Thomas says Sky City is not a suitable partner with Aspinall and it will get no help from him.
Evan Davies believes Mr Thomas' opposition is self-interest, as it appears he wanted to buy the stake himself.
Mr Davies says Sky City and Skyline are successful partners in the Queenstown casino.
