The Macau government plans to sign the contracts for the six new gaming concessions with the six incumbent operators on Friday, 16th of December.
A press conference is scheduled for Saturday where more details of the contracts are expected to be announced.
Macau’s Chief Executive is leaving for Beijing to report on the city’s development to the Party’s leaders and is expected back in time to preside over the press conference.
Representatives of the six incumbents are also expected to attend the proceedings.
The new 10-year concessions contracts become effective as of the 1st of January 2023.
Ahead of the signing of the contracts SJM and MGM are the latest incumbents to complete the share capital requirements.
In order to enter into a new gaming concession pursuant to the Macau Gaming Law, SJM Resorts is required to increase its issued share capital from MOP300 million to MOP5,000 million and to increase the issued share capital held by SJM Resorts MD from 10% to 15%.
Prior to the increase, the share capital of SJM Resorts has a total par value of MOP300 million divided into two categories, namely, Type A shares and Type B shares with a total par value of MOP270 million and MOP30 million, representing 90% and 10% of the then issued share capital of SJM Resorts, respectively. The Type A shares are directly and indirectly held by the Company whilst the Type B shares are held by the SJM Resorts MD (currently Ms. Daisy Ho) as required by the Macau gaming regulatory framework.
The SJM Resorts board announced that it has completed the registration of capital increase on 28 November 2022. Under the Subscription, the Company has provided additional capital of MOP4,700 million (being MOP5,000 million less MOP300 million) for both its Type A shares and Type B shares, which represents the entire additional capital.
Following completion of the Subscription, the share capital of SJM Resorts now has a total par value of MOP5,000 million divided into Type A shares and Type B shares with a total par value of MOP4,250 million and MOP750 million, representing 85% and 15% of the issued share capital of SJM Resorts, respectively.
In turn, and in order to comply with the Gaming Law and the Tender Regulation, the Company, the Managing Director and MGM Grand Paradise entered into the Contribution and Share Subscription Agreement on August 21, 2022, pursuant to which the Company agreed to conduct a capital restructuring.
The company agreed to inject MOP4.8 billion into MGM Grand Paradise.
MGM Grand Paradise also agreed to issue and allot 4,070,000 Class A Subscribed Shares to the Company at an aggregate subscription price of MOP4.07 billion and 730,000 Class B Subscribed Shares to the Company at an aggregate subscription price of MOP730 million, and the Company agreed to transfer 730,000 Class B Subscribed Shares to the Managing Director for MOP1.