15/05/2013 07:30:00

UPDATE: Macau Gives SJM Green Light on Cotai Casino

Related content
22 Feb - 
Melco Crown Entertainment Leads Macau Entries in 2017 F..
22 Feb - 
Melco Crown Entertainment Unveiled the Inspiration Behi..
21 Feb - 
City of Dreams’ Jade Dragon and The Tasting Room The On..

By Kate O'Keeffe

Macau's biggest casino operator, SJM Holdings Ltd. (0880.HK), Wednesday became the last of the territory's gambling companies to win approval from the government to build a project on Cotai, a rapidly developing area in the world's largest gambling center.

The finalization of the government's land contract with SJM, which is controlled by the family of casino mogul Stanley Ho, comes as Macau's six casino operators compete to expand their foothold in the Chinese territory. Nevada-based companies Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN) and MGM Resorts International (MGM), as well as Hong Kong's Galaxy Entertainment Ltd. (0027.HK) and Hong Kong-Australian venture Melco Crown Entertainment Ltd. (MPEL), are all developing projects in Cotai.

Annual revenue growth for Macau's casinos has begun to slow--in 2012 gambling revenue rose 14% from the previous year compared with the 42% growth seen in 2011--and access to labor and gambling tables remain restricted by the government. Still, a revenue haul six times the size of the Las Vegas Strip's means Macau will remain the world's most important gambling market for the foreseeable future.

SJM's shares were the best-performing among Macau casino stocks, trading 3.0% higher at HK$22.10 in the afternoon session after the company announced the news. Hong Kong's benchmark Hang Seng Index was up 0.8%.

In October SJM said it would need to pay the Macau government a 2.15 billion patacas (US$270 million) contract premium, plus annual rent, for the land, which has an area of 70,468 square meters.

In a Wednesday statement, SJM reiterated its plan to build a casino-resort on the land with approximately 700 gambling tables, 1,000 slot machines and 2,000 hotel rooms.

But the project's ultimate scope remains unclear. Macau media reported that SJM Chief Executive Ambrose So last week said on the sidelines of an event that the company would seek to combine its Cotai land and resources with director Angela Leong, the woman Mr. Ho refers to as his fourth wife, to build a resort more than three times the size it had originally planned. In 2010, a company controlled by Ms. Leong said it would invest 10.4 billion patacas in a casino-less, family-oriented theme park and hotel resort in Cotai. Representatives for SJM didn't immediately return requests for comment.

"We note that the development timeline for this project could be slightly longer than the typical three-year cycle as the company is still in negotiations with SJM Director Angela Leong to expand the scope of the company's Cotai project via development of certain non-gaming amenities on the adjacent land that she controls," Union Gaming Group analyst Grant Govertsen wrote in a note Wednesday.

Mr. Govertsen raised his target price on SJM to HK$26 from HK$25 following news of the formal land grant.

Write to Kate O'Keeffe at Kathryn.OKeeffe@wsj.com

-0-

(MORE TO FOLLOW) Dow Jones Newswires

May 15, 2013 02:30 ET (06:30 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
Ingen indlæg

Regulatory news

Rathbones : Form 8.3 - [Booker Group Plc]

24/03/2017 10:39:04
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Rathbone Brothers PLC (b) Owner or controller of ..

Alliance Trust PLC : Transaction in Own Shares

24/03/2017 07:00:29
24 March 2017  Alliance Trust PLC TRANSACTION IN OWN SHARES  The Board of Alliance Trust PLC ("the Company") announces that on 23 March 2017 the Company purchased for cancellation 716,011 ordinary shares of 2.5p each at a price of 683.6634p per share.  Therefore, the total number of voting rights in the Company is now 365,885,066.    The above figure (365,885,066) may be used by sharehold..

Alliance Trust PLC : Net Asset Value(s)

23/03/2017 15:29:25
ALLIANCE TRUST PLC                                    At the close of business on Wednesday 22 March 2017: The Company's NAV per ordinary share, valued on a bid price basis with Debt at Par, was -       excluding income, 721.9p -       including income, 727.7p  The Company's NAV per ordinary share, valued on a bid price basis with Debt at Fair Value, was -       excluding inc..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Primus Power Announces Completion of $32M Financing Round
2
Guggenheim Macro Opportunities Fund Earns Third Consecutive U.S. Lipper Fund Award for Consistent Risk-Adjusted Performance
3
Bellicum Pharmaceuticals Announces Pricing of Public Offering of Common Stock
4
Advanced Emissions Solutions Announces the Lease of an Additional Refined Coal Facility
5
The “Brain” of the Space Launch System RS-25 Engine Passes Critical Test

Related stock quotes

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
24 March 2017 14:13:38
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170324.1 - EUROWEB4 - 2017-03-24 15:13:38 - 2017-03-24 14:13:38 - 1000 - Website: OKAY