Sky City prepares for Force stand

By Phil Boeyen, ShareChat Business News Editor

Monday 19th March 2001

Gambling and entertainment company Sky City (NZSE: SKC) will go onto the market tomorrow to try to complete its purchase of cinema operator Force.

SKC says it has received Overseas Investment Commission approval to acquire 100% of Force, and is buying a 50.2% stake from current majority holder Francis Securities at a price of 25 cents per share.

The company says it will stand in the market for Force shares for just one day, at the same price. An independent appraisal report has valued Force shares in a range of 22c to 32c.

The market stand is conditional on settlement of the Francis Securities' stake, which is expected tomorrow.

In a letter to shareholders Force has noted that independent director, Michael Daniel, does not intend to accept Sky City's offer in respect of his shares held by him or his associated interests.

However Force chairman, Peter Francis, says he believes Sky City, as a majority shareholder, would bring a new dimension of expertise to Force Corporation.

"Their expertise in food, beverage and facility management provides a significant opportunity to enhance the on-going operation of Force's entertainment activities. In addition to their expertise in entertainment, Sky City's financial strength meant that it would be strongly placed to support the growth of Force Corporation going forward."

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