NZ's Sky City CEO sees year of consolidation, then expansion

WELLINGTON, March 25 (Reuters) - New Zealand casino operator Sky City Entertainment Group Ltd (SKC.NZ: Quote, Profile, Research, Stock Buzz) is likely off the takeover radar and can now look to a revival and expansion, the new chief executive said on Tuesday.

Nigel Morrison, in the job for three weeks, said turbulent markets had probably killed any near-term interest in Sky City, leaving the struggling company to turn itself around.

"Shareholders have made it clear to us we need to fix the business first," Morrison told Reuters in an interview, adding he envisaged 12-18 months to get the business performing as it should.

"Right now we're focusing on the existing casinos we've got, and then I think we'd want to look at what opportunities we've got in Australia or Asia in gaming," which he said could include buying casinos or partnering with existing operators.

Sky City, a top-10 company last traded down 1.1 percent at NZ$3.59, compared with a wider market .NZ50 up 0.4 percent.

It owns or has an interest in five of New Zealand's six casinos, and two in Australia, where it competes with Tattersall's Ltd (TTS.AX: Quote, Profile, Research, Stock Buzz) and Tabcorp Holdings Ltd (TAH.AX: Quote, Profile, Research, Stock Buzz).

The company has been the subject of takeover interest over the past six months, when an unnamed buyer, whom sources told Reuters was private equity firm TPG [TPG.UL], looked over the business, but did not make a bid because it could not raise the finance.

"With the U.S. markets in the state they're in, and the strength of the New Zealand dollar, anything on the immediate horizon looks unlikely," Morrison said. (NZ$1=$1.25)