New Zealand deal advances

Wednesday, May 19, 2004 | 9:04 a.m.

BLOOMBERG NEWS

AUCKLAND, New Zealand -- Sky City Entertainment Group Ltd., New Zealand's largest gaming company, has gained approval from the nation's antitrust regulator to buy a stake in Christchurch Casinos Ltd.

"The proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the Auckland, Christchurch and Dunedin casino entertainment markets," the Wellington-based Commerce Commission said in a statement Tuesday.

Auckland-based Sky City agreed last month to pay NZ$93.8 million ($56 million) to buy all the shares in Aspinall New Zealand Ltd., which owns a 40.5 percent stake in Christchurch Casino.

Sky City, which gets 87 percent of its earnings from its Auckland casino, is restricted from building new casinos or expanding its existing gaming operations in New Zealand by government rules. To boost earnings, Sky City is buying a hotel and casino in Darwin, upgrading its casino in Adelaide, and building a new hotel and convention center in Auckland.

Christchurch Casino, based in the largest city on the nation's South Island, has 45 gaming tables, 500 slot machines, two cafes, three bars, a private gaming lounge and two car parking areas.

Christchurch Casino also has 33 percent of the shares in Dunedin Casinos Ltd., the owner and operator of the only casino in the South Island city of Dunedin.