MACAU BUSINESS
2016 and 2017. The company plans to build a casino resort with
capacity for up to 700 live gaming tables, 1,000 slot machines and 2,000 hotel rooms. SJM Holdings’ plot is the smallest of all the gaming
operators. Chief executive Ambrose So Shu Fai announced recently that the company will combine land and resources with Legislative Assembly member and SJM director Angela Leong On Kei, to build a bigger resort. Mrs Leong already has government consent for a
separate 180,000-square metre piece of land next to SJM Holdings’ plot. The plot is held by a firm called Macau Theme Park
and Resort Ltd, headed by Mrs Leong. According to 2010 reports, the company was full of high-profile local businesspeople. Besides Mrs Leong, Legislative Assembly member Chan Chak Mo was project manager, while government-appointed assembly member Vong Hin Fai was the legal
Smart deal Galaxy Entertainment Group Ltd announced
recently that it will buy the Grand Waldo casino resort. Galaxy Entertainment said in a filing to the Hong Kong Stock Exchange it would pay HK$3.25 billion (US$419 million) for the property. The company says it is looking for further acquisition opportunities in Macau. Get Nice Holdings Ltd, which has a majority
stake in the Grand Waldo, also confirmed the deal. Last year, Get Nice failed to sell its share in the loss-making property to an unidentified “international group”. Grand Waldo is one of the third-party owned
satellite casinos operating under Galaxy Entertainment’s gaming licence. The gaming operator said the acquisition “is
a strategic investment and is expected to have synergistic effect” on the group’s development in Cotai. Grand Waldo is located across the road from Galaxy Macau. The deal is to be completed in the next
quarter.
Union Gaming Research says that the acquisition was a smart move, as it allowed the gaming operator to acquire 38 gaming tables at an attractive price. “We have long argued that it would make sense for Macau’s gaming operators to acquire tables (and the underlying physical assets if need be) from the various third-party satellite casinos,” Macau-based analysts Grant Govertsen and Felicity Chiang wrote in a note.
adviser. Assembly member Chui Sai Cheong, the elder
brother of Chief Executive Fernando Chui Sai On, was among the founding directors of the company. However, he reportedly left the company in mid-2010. Macau Theme Park plans to spend MOP10.4 billion on building 6,000 hotel rooms, an indoor beach, two theme parks and a “4-D theatre”. “The theme park will include a budget hotel and a
family-themed resort, along with amusement facilities for children,” Mrs Leong said last month. She added the project could be completed by 2017, about the same time as SJM Holdings’ casino resort. SJM Holdings wants to finalise the deal with Macau Theme Park in the second half of the year. “We are now discussing how [SJM Holdings] can
rent the [Macau Theme Park] land and we will make an announcement in due course,” stated Mr So last month. “The possibility is very high that we will develop [the project] together.”
Union Gaming estimates there
are nearly 1,200 gaming tables in operation today at 19 third-party satellite casinos, most of which are operated by SJM Holdings Ltd,
as well as four by Galaxy Entertainment and one by Melco Crown Entertainment Ltd. “Tables are a finite and scarce resource (and
therefore extremely valuable) in the context of the Macau government’s market-wide cap on the number of tables,” Mr Govertsen and Ms Chiang wrote. “We believe that the best way to think about the acquisition of Grand Waldo is in terms of what its gaming assets could generate if they performed at least inline with Galaxy Entertainment’s existing wholly-owned gaming tables.”
22 JULY/AUGUST 2013
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