GGRAsia – SJM Resorts capital to be raised to US$600mln for retender

SJM Resorts capital to be raised to US$600mln for retender

Aug 10, 2022 Newsdesk Latest News, Macau, Top of the deck

SJM Resorts Ltd, the entity holding a current Macau gaming concession, is to increase its share capital by nearly 1,567 percent, to MOP5.0 billion (US$618.4 million) from MOP300 million, “to be able to qualify for applying for [a] new gaming concession” under the city’s recently-opened public tender, said its parent SJM Holdings Ltd in a Tuesday filing.

According to Macau’s gaming law amendment, passed in June, the minimum share capital requirement for any local casino concessionaire was increased to MOP5.0 billion, from the previous MOP200-million threshold.

The SJM Holdings parent said in a Tuesday announcement to the Hong Kong Stock Exchange that it would increase the portion of its ‘Type B’ shares from 10 percent of the issued share capital of the SJM Resorts entity, to 15 percent.

Macau’s amended gaming law requires that at least “15 percent” of the gaming concession entity’s share capital has to be held by a “managing director” who is a Macau permanent resident.

The proposal will be put to an extraordinary general meeting of the parent’s shareholders in Hong Kong, on August 26.

Currently, SJM Resorts’ registered MOP300-million capital consists of 2,700,000 ‘Type A’ shares – representing 90 percent of the issued share capital – and 300,000 ‘Type B’ shares – representing 10 percent of the issued share capital – of MOP100 each.

According to the proposal to be put to the August 26 meeting of SJM Holdings stockholders, the aggregate number of ‘Type B’ shares after such issue “or upon exchange or conversion of such securities” will not exceed 15 percent of the enlarged total issued share capital of SJM Resorts.

All the new ‘Type B’ shares are to be issued to the managing director of SJM Resorts in the person’s capacity as such, “at par payable in cash, solely for the purpose of maintaining such managing director’s shareholding in SJM Resorts for compliance with the applicable law,” said that Tuesday filing.

SJM Resorts’ current Macau concession will expire on December 31, having been extended – in common with the other five existing Macau rights holders – from a June 26 expiry date, while the Macau government organised the fresh public tender process.

There is a September 14 submission deadline for Macau’s fresh public tender, with the authorities aiming to have the new 10-year concessions operational by January. Up to six new concessions will be permitted under the updated regulatory framework.