{"id":30304,"date":"2022-05-31T05:36:22","date_gmt":"2022-05-31T08:36:22","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=30304"},"modified":"2022-05-31T07:35:27","modified_gmt":"2022-05-31T10:35:27","slug":"sjm-holdings-may-pay-us38-2m-for-two-self-promoted-casinos","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-may-pay-us38-2m-for-two-self-promoted-casinos","title":{"rendered":"SJM Holdings may pay US$38.2m for two self-promoted casinos"},"content":{"rendered":"\n

It’s expected that SJM Holdings Ltd may buy Casino Eastern and Casino Taipa to satisfy new gaming laws.<\/p>\n\n\n\n\n\n\n\n

Macau.- Having already announced its acquisition of Oceanus<\/a>, SJM Holdings is expected to acquire other self-promoted casinos in Macau \u2013 and it may need to spend HKD300m (US$38.2m) to do that.<\/p>\n\n\n\n

According to\u00a0Daiwa Capital Markets Hong Kong Ltd<\/strong>, that’s the price the casino operator could need to spend HKD300m (US$38.2m) to acquire the Casino Eastern beside the Artyzen Grand Lapa Macau hotel, and Casino Taipa inside the Regency Art Hotel in Taipa.<\/p>\n\n\n\n

However, analysts at JP Morgan Securities suggested in a note that\u00a0Casino Eastern and Casino Taipa could cease operations\u00a0<\/strong>as they failed to generate significant profits in recent years, even before the Covid-19 pandemic.<\/p>\n\n\n\n

For Oceanus, SJM has said it will pay HK$516m for the non-gaming area and\u00a0HK$1.3m for the Oceanus casino area<\/strong>. The motivation for the purchase is the extension of the company\u2019s concession contract with the Macau government, allowing it to meet a new property ownership requirement.<\/p>\n\n\n\n

SJM Holdings said that while negotiating to extend its concession contract to December 31, 2021, it agreed to provide a letter of commitment to Macau authorities to ensure the restoration of public control of the Oceanus Gaming Area at the end of the concession period.<\/p>\n\n\n\n

Under current gaming laws, franchisees must automatically return their casinos and related equipment to the Macau government without any encumbrances or limitations at the end of the franchise period.<\/p>\n\n\n\n

Authorities approve SJM Holdings refinance plan<\/h2>\n\n\n\n

Authorities in Macau have approved\u00a0SJM Holdings\u2019 plan to refinance its existing bank loans\u00a0<\/strong>with a new loan line of HKD19.0bn (US$2.44bn). Only the banks\u2019 approval is now needed for it to be effective.<\/p>\n\n\n\n

According to analysts Praveen Choudhary and Gareth Leung, the refinancing would provide the company with HK$6bn of additional liquidity as it draws down HK$13bn of previous loans. The new maturity date for the lines would be 2028. <\/p>\n\n\n\n

The effective interest rate would be the Hong Kong Interbank Offered Rate (HIBOR) plus 1.5 per cent to 2.25 per cent, terms similar to those on the present facility.<\/p>\n","protected":false},"excerpt":{"rendered":"

It’s expected that SJM Holdings Ltd may buy Casino Eastern and Casino Taipa to satisfy new gaming laws.<\/p>\n","protected":false},"author":176,"featured_media":18522,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"footnotes":""},"categories":[157,16338],"tags":[23108],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30304"}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=30304"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30304\/revisions"}],"predecessor-version":[{"id":30314,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30304\/revisions\/30314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/18522"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=30304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=30304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=30304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}