Macau gaming concession contracts to be signed on Friday

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The Macau government aims to sign the agreement for new gaming concessions with six incumbent operators on Friday, 16 December. More information regarding the contracts is anticipated to be revealed at a news conference on Saturday.

The Chief Executive of Macau is departing for Beijing to brief the Party’s leaders on the city’s progress and is anticipated to return in time to preside over the press conference.

The new 10-year concessions contracts take effect on January 1st, 2023, and representatives of the six incumbents are anticipated to be present during the proceedings. SJM and MGM are the most recent incumbents to satisfy the share capital criteria prior to contract signing.

According to the Macau Gaming Law, SJM Resorts must raise its issued share capital from MOP 300 million to MOP 5,000 million and the issued share capital held by SJM Resorts MD from 10% to 15% in order to enter into a new gaming concession.

SJM Resorts’ share capital had a total par value of MOP 300 million before the increase. The capital was split into Type A and Type B, respectively. Type A had a value of MOP 270 million, and Type B had a value of 30 million (90% and 10%) of the company’s issued shared capital.

As required by the Macau gaming regulatory framework, the Type A shares are owned directly and indirectly by the Company, while Daisy Ho, MD of SJM Resorts, holds the Type B shares.

On November 28, 2022, the SJM Resorts board declared that the registration of the capital increase was now complete. The Company has supplied MOP 4,700 million in additional capital under the Subscription. This additional capital applies to both the Company’s Type A shares and Type B shares.

After the Subscription was finished, the issued share capital of SJM Resorts was divided into Type A shares, and Type B shares with total par values of MOP 4,250 million and MOP 750 million, respectively. These shares represented 85% and 15% of the entire issued share capital of SJM Resorts.

The Contribution and Share Subscription Agreement was subsequently signed on August 21, 2022, by the Company, the Managing Director, and MGM Grand Paradise, and it stipulated that the Company would carry out a capital restructuring in order to comply with the Gaming Law and the Tender Regulation.

The business consented to give MGM Grand Paradise a MOP 4.8 billion investment.

An agreement to issue and allot 4,070,000 Class A subscribed shares to the company for a total subscription price of MOP 4.07 billion, as well as 730,000 Class B Subscribed Shares to the Company for a total subscription price of MOP 730 million, was made by MGM Grand Paradise.

The Managing Director will receive 730,000 Class B Subscribed Shares from the Company in exchange for MOP one million.