Gambling news from http://www.news.com.au/
NEW Zealand's Sky City Entertainment Group remains one of the last great takeover targets as the consolidation across Australia's $16 billion gambling sector winds down for a lack of opportunities.
The ink has hardly dried on the Tattersall's-Unitab merger approved last Friday and speculation has already turned to potential acquisitions under review by the new $4 billion group.
Sky City, which includes casinos in Adelaide and Darwin, would give Tattersall's its first exposure to casinos and add to the group's geographic diversification.
The Auckland-based firm generated a 15 per cent spike in net profit to $NZ120 million ($A105.9 million) last year. However, some analysts said the result fell short of expectations and have downgraded their forecast for this year.
"Acquisition opportunities are reasonably skinny but clearly Tattersall's are missing the casino assets. Sky City is the most logical target," ABN Amro gaming analyst Nick Caley said.
Any move on Sky City would almost certainly attract competing bids from Tattersall's main rivals Tabcorp and James Packer's Publishing & Broadcasting, as well as the Federal Hotels group.
Unitab chief executive Dick McIlwain, who is set to head the merged entity, confirmed yesterday that he had held informal talks with Sky City periodically and as recently as last year. But he said that his immediate goal remained the fusing of Tattersall's and Unitab and extracting cost savings set to reach $20 million by the second year.
Tattersall's will also be focused intensely on crucial gaming and wagering licence renewals in Victoria.
Beyond Sky City, there is talk that state-owned lotteries, including Queensland's Golden Casket, might be privatised and such assets would make a logical fit with Tattersall's existing lotteries operation in Victoria.
Golden Casket generated $203 million for the Queensland Government in the 2005 financial year.
Tattersall's shares fell 2 to $3.37 yesterday.
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