BRL Blackthorn

RNS No 4870f
BRIERLEY INVESTMENT LIMITED
3rd March 1999


      SKY CITY INSTALMENT RECEIPTS OFFER ENHANCED DIVIDEND YIELD

Investors in Sky City can expect an enhanced dividend yield of at least 19%(1)
(17.7% annualised) on the First Instalment Receipt of $4.00, over the 12 1/2
month instalment period, the Sky City Investment Statement released today
reveals.

The Investment Statement also notes that "the partial payment characteristics of
Instalment Receipts should provide investors with a leveraged exposure to
movements in the Sky City share price".

Brierley Investments Limited (BIL) is selling its 65.6% shareholding in Sky City
via an Instalment Receipts programme, which requires investors to make an
initial payment of $4.00 per share by the closing date of the offer on March 25,
1999.  This will be followed by the second and final payment by April
20, 2000(2).  The opening date for the Offer is March 8, 1999.

The final pricing of the offer will be determined by an institutional book
building process.  Book building bids are due on March 26, 1999.  The final
instalment will be the final price less the first instalment.  The minimum
application size will be 500 shares.  The Instalment Receipts are expected to
begin trading on the New Zealand Stock Exchange (NZSE) and Australian Stock
Exchange (ASX) alongside Sky City shares on March 29, 1999(3).

Credit Suisse First Boston is Global Co-ordinator and Lead Manager to the issue.
JB Were & Son (NZ) Limited, Ord Minnett Securities - NZ - Limited and Forsyth
Barr Limited are Co-managers to the issue.  Copies of the Investment Statement
are also available from any Member of the NZSE.

A pool of 15 million shares has been reserved for preferential allocation to BIL
shareholders.  The minimum application into this pool is 500 shares and the
maximum is 25,000 shares.

Sky City achieved a 5.6% increase in revenues to $128 million in the six months
to December 31 1998, yielding a net surplus after tax of $22.4 million.  The
improvement in operating performance reflected strong growth in gaming revenues
and the termination of the management contract with Harrah's Entertainment, Inc.

The Investment Statement notes that, "Sky City has historically generated strong
cash flows and has a low anticipated capital expenditure profile relative to
depreciation.  To the extent that imputation credits are available, Sky City's
current policy is to distribute 90% of net surplus after tax as fully imputed
dividends to shareholders.

"The Company has consistently delivered EBITDA (earnings before interest, tax,
depreciation and amortisation) margins in excess of those achieved by Australian
casino operations for which information is publicly available.

"Sky City is well positioned to participate in any further expansion in the New
Zealand gaming entertainment sector.  The Company is currently involved in
applications for casino premises licenses in Queenstown and Hamilton"


(Not for distribution in the United State of America)


                    SKY CITY LITD INSTALMENT RECEIPTS ISSUE
                           INVESTMENT SUMMARY

-  63,100,000  shares are being sold by BIL subsidiary Betony Properties Ltd.

-  The shares are being sold via an Instalment Receipts issue.

-  The opening date of the offer is March 8, 1999

-  The first instalment of $4.00 per share is payable on application

-  Applications pursuant to a firm allocation will close at 5.00pm on 
   March 24, 1999

-  Applications from the public will close at 5.00 pm on March 25, 1999

-  Institutional book building bids are due by 5.00 pm on March 26,1999

-  The final price will be determined on or about March 28, 1999.

-  Listing on the NZSE and Australian Stock Exchange is expected to occur on 
   March 29, 1999 (3)

-  The second and final instalment, due by April 20, 2000, will be the final
   price of the issue, less the $4.00 per share first instalment.



(1) Before tax, including imputation credits and assuming interim and final
    dividend payments continue at 17 cents (fully imputed).  Please refer to
    page 7 of the Sky City Investment Statement or the registered prospectus for
    a specific explanation of the dividend yield calculation.

(2) BIL's shares are held through subsidiary Betony Properties Limited.  BIL and
    its subsidiary do not guarantee the instalment receipts or the underlying
    shares.

(3) Application has been made to the New Zealand Stock Exchange for permission
    to quote the instalment receipts and all the requirements of the Exchange
    relating therein that can be complied with on or before the date of the
    publication of this release have been complied with.  However, the NZSE
    accepts no responsibility for any satement in this release.  A prospectus
    has been delivered to the Companies Office for registration and is available
    upon request by calling 0800 SKYNOW (0800 759 669).  Sky City Limited has
    applied for listing on the Australian Stock Exchange.
 


For further information:

Mike Drogemuller                          Heather Shotter
Brierley Investment Limited               Sky City Limited
Tel: 04 470 8828                          Tel: 09 912 6023

Ross Mear
Credit Suisse First Boston
Tel: 04 474 4400


END

DISNFFDDEDNNEFN

Blackthorn (LSE:BRL)
Historical Stock Chart
From Jun 2024 to Jul 2024

Blackthorn (LSE:BRL)
Historical Stock Chart
From Jul 2023 to Jul 2024