Casino operator SkyCity Entertainment has confirmed it is considering raising new capital forcing a halt in the trading of its shares.
The company said it was aware of media reports that it was looking to raise more than $200 million to reinforce its finances.
The Australian outlet speculated that SkyCity would be looking to investment firms to buy shares as it faces soft earnings, high debt levels, and continued issues with regulators about the operation of its casinos.
“SkyCity… is not presently in a position to make an announcement regarding the capital raise, as no final decision has been made to proceed and the final details are still being determined,” it said in a statement to NZX.
It said the trading halt was necessary as it finalised any potential capital raise and its annual earnings, which are due to be reported on Thursday morning.
It said, if a capital raise did go ahead, it would need to extend the trading halt until the offer was completed.
Last week, an independent South Australian inquiry cleared SkyCity as fit to hold the licence to operate Adelaide casino after it admitted breaches of anti-money laundering and host responsibility rules.
In May, the company warned that its full year profit would be softer than originally expected because of weak consumer spending and lack of tourists.
rnz.co.nz
