SkyCity shares rally on Grand Hotel asset sale agreement

The news: Shares in SkyCity Entertainment jumped in afternoon trade after the casino owner entered into a non-binding agreement to sell its luxury Grand Hotel asset in Auckland to an overseas buyer for an undisclosed sum.

Shares rallied 10.2% to 54 cents at 12:57pm AEST.

The context: The sale remains subject to the completion of due diligence and approval from the New Zealand Overseas Investment Office. The buyer remains undisclosed.

SkyCity said the transaction forms part of its previously announced asset monetisation programme, with the capital to be used to repay debt and provide financial security to navigate current market volatility.