SJM Resorts S.A. has become the latest Macau concessionaire to complete a capital increase and restructuring of its share distribution in order to comply with the city’s new gaming law and tender requirements.
The gaming law, which passed through the Legislative Assembly in June, increases the minimum share capital concessionaires must hold from MOP$200 million (US$25 million) to MOP$5 billion (US$625 million), with 15% of the share distribution to be held by a Macau-based Managing Director – up from 10% under the previous law.
In preparation of the impending grant of new 10-year gaming concessions, SJM had already announced that its Chairman, Daisy Ho, would replace Angela Leong as Managing Director with Leong transferring her 10% holding to Ho in October.
In a Tuesday filing, parent company SJM Holdings announced that it has now injected MOP$4.7 billion (US$587 million) in capital into SJM Resorts, adding to the MOP$300 million (US$38 million) in share capital it already held to take the total to MOP$5 billion.
This has been divided into Type A shares held by SJM Holdings with a par value of MOP$4.25 billion (US$531 million) and Type B shares held by Ho with a par value of MOP$750 million (US$94 million), representing 85% and 15% of the issued share capital of SJM Resorts respectively.
SJM Holdings said that while payment for the new shares was made solely by the company, Ho would hold 15% of the voting rights in SJM Resorts at its general meeting. This does not, however, translate to SJM Holdings which maintains 100% of the economic rights over its concession-holding subsidiary.
SJM’s capital restructuring comes a day after MGM China, which boasts Daisy Ho’s sister Pansy Ho as its Managing Director, completed a similar exercise.
All six current Macau concessionaires were recently granted new provisional 10-year concessions by the tender committee, with contracts expected to be signed this Friday.
