SJM Holdings has reached an agreement to purchase the Macau Ocean Casino from its parent organization, Sociedade de Turismo e Diversões de Macau (STDM), for a sum of HK$19.1 billion. This move is intended to fulfill the criteria necessary for extending its Macau gambling permit.
SJM has stated that this transaction will allow the group to satisfy the necessary conditions for securing a fresh gambling license when its current license expires on December 31st. The purchase price will be fully settled through the issuance of convertible bonds, with HK$13.9 billion allocated towards the casino’s gaming area and HK$5.16 billion designated for the non-gaming area. SJM currently rents the property from STDM, having paid HK$80.6 million in rent in 2021, a significant increase from the HK$43 million paid in 2020. However, given that the franchise is anticipated to be transferred without any associated costs or burdens, and all casino facilities and equipment will be transferred at the end of the franchise period, SJM has decided to take ownership of the Ocean Casino to ensure a seamless transfer.
Beyond this factor, SJM has also emphasized that the acquisition empowers SJM Resorts to manage the gaming and non-gaming operations within the Ocean Casino in a mutually beneficial way, creating a complementary synergy between the two.
Prior to the COVID-19 outbreak, the boundary between Macau and Hong Kong was unrestricted, and the firm generated substantial revenue from its gambling establishments. It was among the company’s most profitable entertainment ventures from 2017 to 2019, Melco Resorts & Entertainment stated.
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