SJM to raise HK$5 billion through term loan, rights issue in bid to satisfy Macau share capital requirement

SJM Holdings has announced it will raise almost HK$5 billion (US$637 million) in equity via a HK$2 billion (US$255 million) term loan from its controlling shareholder Sociedade de Turismo e Diversões de Macau, S.A. (STDM) and another HK$2.94 billion (US$375 million) via a rights issue.

The proceeds will enable SJM subsidiary SJM Resorts, S.A. – the company that holds its Macau casino concession – to satisfy a key requirement under Macau’s new gaming law by which all concessionaires must have MOP$5 billion in share capital set aside to pre-qualify for the government’s re-tender process.

SJM, which this week reported a US$352 million loss for the six months to 30 June 2022, said overnight that the term loan from STDM was for a fixed period of six years from the date of drawdown at an interest rate of 4% per annum.

The rights issue will offer one rights share for every four existing shares at a subscription price of HK$2.08 per rights share assuming no share options under the company’s employee share option scheme are exercised. The subscription price represents a discount of approximately 29% to the theoretical ex-rights share price, it said.

Source: https://www.asgam.com/index.php/2022/08/04/sjm-to-raise-hk5-billion-through-term-loan-rights-issue-in-bid-to-satisfy-macau-share-capital-requirement/