BRIEF: SJM completes L’Arc Hotel acquisition

Macao casino operator SJM Holdings Ltd. (0880.HK) announced on Sunday that it completed its acquisition of Arc of Triumph Development Co. Ltd. on Dec. 17, making Arc a wholly owned subsidiary of its SJM Resorts arm.

The company further disclosed that SJM Resorts received approval from the Macao Gaming Inspection and Coordination Bureau on Dec. 26 to operate casino games at Casino L’Arc Macao as a directly managed and operated casino from Dec. 30. Following that step, SJM Resorts has assumed direct operation of L’Arc’s hotel accommodation, food and beverage outlets, retail facilities and casino gaming.

L’Arc Hotel is located in the NAPE district of the Macao Peninsula and has a gross floor area of about 86,438 square meters, comprising hotel, dining, retail and casino facilities. SJM Resorts said the acquisition would strengthen its presence in high-density tourism zones and enhance synergies with its Lisboa-branded properties.

L’Arc Macao previously operated as a “satellite casino,” a business model where licensed gaming companies operate casinos inside existing hotels. That model is being phased out by the end of this year under Macao’s new gaming law. Of the nine satellite casinos once affiliated with SJM Holdings, eight have already closed, with L’Arc the only one retained through an acquisition and converted into a directly operated casino property under SJM Resorts.

SJM’s stock opened lower on Monday and closed at HK$2.45 by the midday break, down 1.21%. The stock has fallen about 8.9% this year.

By Lee Shih Ta

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