GGRAsia – SJM confident of continued presence in Macau: chairman

SJM confident of continued presence in Macau: chairman

Apr 22, 2022 Newsdesk Latest News, Macau, Top of the deck

Daisy Ho Chiu Fung (pictured in a file photo), chairman and an executive director of Macau casino operator SJM Holdings Ltd, says the company is “earnestly preparing” for what it confidently believes will be its next concession period in the Macau market, once the city’s current licences expire this year.

“As of this date, the final terms and conditions of the next concessions have not entirely been determined, but we know that there will be up to six, ten-year concessions, accompanied with important regulatory changes and certain changes in the structure of the concessionaire and its assets,” said Ms Ho.

Her comments were included in the group’s 2021 annual report, published on Thursday.

She added: “Since the draft revised gaming law was presented by the Macau government in September, we have been preparing for the tender process and confidently looking forward to our continued… presence in Macau.”

SJM Holdings, alongside the city’s other five casino operators, had applied to the Macau government in March for an extension until December 31 of its existing rights, as made feasible by the local authorities. The current licences are due to expire on June 26.

Some of SJM Holdings’ market rivals have confirmed recently they have committed to pay the Macau government up to MOP47 million (about US$6 million) in return for their Macau gaming licence being extended for a further six months, to December 31 this year.

Those operators have also mentioned they are required to provide a bank guarantee to cover payment obligations towards their employees, in case the operators concerned fail to gain a new concession contract after December 31.

In late February, SJM Holdings reported a HKD4.14-billion (US$527.7 million) loss for 2021. It also mentioned at the time, a short-term extension on maturity of its current debt to the end of February 2023, adding it expected to complete longer-term financing by the second quarter this year.

“The group is in the progress of finalising a new long-term bank facility with banks for refinancing its bank loans which is expected to complete in 2022,” the firm said in its latest annual report.