SkyCity partner Fletcher Building halts trading as shares down 6%
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More news: Shares in SkyCity's construction partner Fletcher Building were down 6% to $3.70 at 1pm AEDT, before the building products supplier paused trading.
Fletcher said last week that its half-year earnings would likely be hit by further provisions due to troubled construction projects for SkyCity in Auckland and at Wellington Airport.
The firm is due to release its first-half earnings results before the market opens on Wednesday. In a market announcement Fletcher advised that its earnings guidance "is likely to materially vary from current analysts forecasts".
Jarden analysts last projected first-half EBIT of NZ$328 million ($308.5 million), with FY24 "progressing as planned".
SkyCity shares drop on news of fresh legal battle
More news: SkyCity Entertainment shares dipped 2.8% by 12:20pm AEDT on the ASX, after news that the New Zealand Department of Internal Affairs would proceed with a civil penalty proceeding against the casino operator's New Zealand subsidiary.
The claims, relating to non-compliance with anti-money laundering and terrorism financing laws, compound SkyCity's ongoing legal battle in Australia, which will see the group appear before the Federal Court of Australia in June.
Casino operator SkyCity hit with NZ civil penalty proceedings
The news: Casino operator SkyCity Entertainment Group has been hit with another civil penalty proceeding, this time with the New Zealand Department of Internal Affairs for non-compliance with anti-money laundering and terrorism financing laws.
The numbers: The civil proceedings against SkyCity Casino Management — the group's New Zealand subsidiary that holds the licence for its Auckland, Hamilton and Queenstown casinos — are due to be filed on 16 February, with its maximum liability in relation to the claims assessed at $NZ8 million ($7.54 million).
Earlier this month SkyCity revised up its provision for a civil penalty in Australia from $45 million to $73 million, following an investigation by financial crime watchdog Austrac that found "systemic failures" in the company's anti-money laundering and counter-terrorism financing obligations.
The context: SkyCity said the five separate causes of action outlined in draft pleadings allege "significant compliance issues", while the company "is disappointed it has not met the standard to which it needs to hold itself and this has resulted in the action taken by the department".
The dual-listed firm claim the issues are "largely, although not exclusively, historical matters", some of which relate to incidents of non-compliance which have previously been self-reported to the New Zealand government.
The source: ASX announcement
