21 Apr 2009

Sky City trading halted

12:32 pm on 21 April 2009

Trading in the shares of Sky City Entertainment Group have been halted as the casino operator seeks to raise fresh capital by selling new shares to institutional investors.

The company's stock shed 8 cents, or 2.7% , to $2.85 per share in trading on Tuesday morning.

A number of companies have been raising money to strengthen their balance sheets to stave off the effect of tighter credit conditions, and protect themselves from the worst of the recession.

In March, Sky City said revenue in the first two months of 2009 was was tracking ahead of the same period last year, particularly at its Australian operations in Adelaide and Darwin.

While the future outlook is dependent on how the economies of Australia and New Zealand perform, the company says growth was encouraging.

Sky City owns or has an interest in five casinos in New Zealand and two in Australia.