SJM Resorts Inc., which currently holds a Macau gaming licence, will increase its stock capital by nearly 1,567 percent from MOP 300 million to MOP 5 billion ($618.4 million) to qualify for a new gaming licence, parent SJM Holdings Inc. said in a filing on Tuesday.
According to Macau’s game law amendment passed in June, the minimum stock capital requirement for local casino concessors has increased from the existing MOP 200 million threshold to MOP 5 billion.
The parent company of SJM Holdings said in an announcement on the Hong Kong Stock Exchange on Tuesday it would increase the weight of its “Type B” shares to 15% of SJM Resorts Corp’s issued share capital. 파칭코사이트인포
Macau’s revised gaming law requires at least “15%” of the share capital of the gaming licensing body to be held by the “management director” who is a permanent resident of Macau.
The proposal will be presented at the extraordinary general meeting of shareholders of the parent company to be held in August 26.
Currently, SJM Resorts’ 300 million registered MOPs consist of 2,700,000 “Type A” shares, or 90% of its outstanding share capital, and 300,000 “Type B” shares, or 10% of its MOP 100.
According to the agenda to be presented to SJM Holdings’s shareholders’ meeting on Aug. 26, the total number of “Type B” shares after the issue “at the exchange or conversion of such securities” will not exceed 15% of the total issued share capital of SJM Resorts.
All new ‘Type B’ shares will be issued to SJM Resorts’ managing director “in a capacity to pay in cash only for the purpose of maintaining the managing director’s stake in SJM Resorts to comply with the applicable law,” a filing said on Tuesday.
The current Macau concession at SJM Resorts expires Dec. 31, extending from June 26 expiration in common with five other Macau rights holders, and the Macau government has organized a new open tender process.
Authorities have a Sept. 14 deadline for submission of Macau’s new open tender, which aims to operate a new 10-year concession by January. Up to six new concessions are allowed under the updated regulatory framework.