SJM Holdings is still in discussions over a possible acquisition of two Macau satellite casinos as it continues preparations for the cessation of the city’s satellite industry, management has confirmed.
The update formed part of the company’s earnings call late last week, coming the same day as SJM revealed it had reached an agreement with its parent company STDM to acquire 7,504 square meters of space at Hotel Lisboa on the Macau peninsula to relocate some of the gaming tables and slot machines from its existing satellite when they close.
SJM announced in June that it would shutter all nine of its satellite casinos by the end of this year but was looking to acquire Ponte 16, located on Macau’s Inner Harbour, and L’Arc, located in the NAPE area near Wynn Macau and MGM Macau, with a view to making them wholly-owned casinos.
In a Friday note, JP Morgan analysts DS Kim, Selina Li and Lindsey Qian said there was no update on these satellite transactions during SJM’s earnings call although management explained it is “still in negotiations with [the] two satellite casino owners for a potential acquisition, with no comment on pricing or timing (except that the transaction, if it were to happen, should be finalized by year-end according to the regulations).”
In a separate note, Seaport Research Partners senior analyst Vitaly Umansky pointed out that SJM’s satellites represented almost 11 of the company’s 2Q25 EBITDA but questioned whether the company would be able to hang onto this share when they close – even with the relocation of gaming tables and slots to its other properties and the possible acquisition of Ponte 16 and L’Arc.
“We do not expect SJM to be able to retain all the market share of the satellite casinos,” he wrote. “As such, we forecast share to drop further; although margin and profitability will increase as self-operated casinos will have higher margin than satellites. In 2026-2027, we forecast SJM share to drop to low 11% range (from 12.3% in Q2).
“The company remains highly levered and will have acquisition and capex costs related to its announced Hengqin hotel, acquisition of [the two] satellite casinos and expanding the Casino Lisboa.”
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