Hong Kong-listed SJM Holdings has entered into an agreement to acquire Casino L’Arc Macau for HK$1.75 billion (approx. €195.1 million).
The company has agreed to acquire Arc of Triumph Development Company, the owner of L’Arc Hotel, which encompasses hotel accommodation, food and beverage outlets, retail shops, and the premises of Casino L’Arc Macau, which SJM Resorts currently operates under a services arrangement.
“L’Arc Hotel is centrally located within the active cluster of gaming, hospitality and visitor traffic on the Macau Peninsula, where the combined pull of surrounding landmarks and attractions creates opportunities that few locations can match,” said SJM Holdings chairman and executive director Daisy Ho. “With the casino currently operating below its full potential, we see considerable room for growth as part of a stronger, integrated network under SJM Resorts.
“This acquisition will allow us to enhance coordination across our peninsula properties in a unified structure that enhances operational efficiency and unlocks cross-promotional synergies. Our priority is to ensure a smooth transition for employees and to continue contributing to Macau’s tourism economy.”
Under the terms of the transaction, SJM will pay an aggregate amount of HK$1.75 billion to acquire L’Arc Hotel, comprising a nominal purchase price and the repayment of a portion of an outstanding loan of HK$1.93 billion owed to a bank under an existing loan facility.
The shortfall, amounting to HK$177,525,000, will be funded through a loan to be provided by SJM under a separately executed loan agreement with the beneficial owner of the sellers.
The acquisition is subject to approval by SJM Holdings’ independent shareholders at an Extraordinary General Meeting, as well as regulatory approvals from relevant Macau authorities.
Having announced earlier this year that it would acquire the properties where both Casino L’Arc Macau and Casino Ponte 16 are located, SJM also confirmed Thursday that it would not proceed with the Ponte 16 acquisition.
The decision was reached after an assessment of long-term business planning, commercial considerations and resource prioritisation across the group’s portfolio.
“This outcome reflects the company’s disciplined approach to capital deployment and its focus on strengthening core operations in line with market developments and the group’s long term development strategy,” said SJM.
Following the decision, SJM has decided to bring forward the date of Casino Ponte 16’s closure to 28 November.
All gaming tables and gaming machines currently operating at the location will be redeployed to other casinos of the company.
Customers holding chips, deposits or cash rebates accumulated at Casino Ponte 16 that remain unredeemed after its closure may visit other SJM casinos from 29 November for follow up arrangements.
All employees working at Casino Ponte 16 will remain employed and will be reassigned to SJM’s other casinos.
Shares in SJM Holdings Ltd (HKG:0880) were trading 3.69 per cent lower at HK$2.61 per share in Hong Kong Friday afternoon.