Angela Leong, SJM executive director, has acquired all of the remaining shares in L’Arc Entertainment, the company behind the L’Arc Macau casino.
Macau.- SJM Holdings has announced that its executive director Angela Leong On Kei, has acquired all of the remaining shares in L’Arc Entertainment.
The acquisition was completed on May 1, making Angela Leong the sole owner of L’Arc Holding Companies, including City Honour Developments Limited and Power Link Fortune Limited.
SJM Holdings said: “The board is assessing the full implications of this change, including measures on the avoidance of conflict of interest and competition against the Company in connection with the aforesaid change.”
The company said the acquisition represents a significant change from the earlier position in which Angela Leong On Kei was one of several investors in the indirect holding companies.
L’Arc Entertainment has agreed to provide support services to SJM concerning marketing, promotion, customer development and introduction, etc.
L’Arc also authorises SJM to occupy and use the designated area of the L’Arc Macau casino and hotel for the operation of a casino, including mass market, VIP room and slot machines.
L’Arc Macau casino and hotel opened in 2009. It has 53 floors and 283 hotel rooms and operates under a “satellite” casino arrangement through SJM Holdings concession.
The arrangement between SJM Holding and L’Arc Entertainment is valid until June 2022, and L’Arc Entertainment has to pay a monthly fee based on a fixed percentage of the gross gaming revenue.
Macau’s current casino licences will expire in June 2022 but could be extended for up to five years under the city’s gaming laws.
Ambrose So Shu Fai, CEO of SJM has recently said he believes Macau should extend its six current gaming concessions for an extra year.
According to Shu Fai, the move would give Macau’s gaming operators time to recover from the Covid-19 pandemic and the city time to better decide what changes to make to licence criteria.
SJM Holdings has raised nearly HK$1.24bn (US$160m) and MOP298m (US$12.3m) after the issuance of senior notes due 2026.
The company will use approximately 90 per cent of the net proceeds from the proposed offering for refinancing syndicated credit facilities.
SJM’s Grand Lisboa Palace to open in June
SJM Holdings plans to open the Grand Lisboa Palace in June with 304 gaming tables and 1,034 slot games. The hotel will open with limited capacity.
According to Sanford C. Bernstein Ltd, Grand Lisboa Palace will be allowed to open only one of its three hotels with limited retail options.
The Grand Lisboa Palace cost HKD39bn (US$5bn). When complete, it will have around 2,000 hotel rooms split between 3 structures: The Lisboa Palace Hotel, Palazzo Versace Macau, and Karl Lagerfeld Hotel luxury boutique hotel.
The venue includes 27,000 square metres of gaming floor space (290,000 sq ft) for up to 700 gaming tables and 1,200 electronic gaming machines.