The Hong Kong–listed company disclosed on November 20th that two of its subsidiaries—SJM-Investment Limited and SJM Resorts, Limited—have entered into an agreement to purchase Arc of Triumph Development Company Limited, the entity that owns L’Arc Hotel.
The property is located on Avenida 24 de Junho, within what the company describes as the Macau Peninsula’s most concentrated hospitality and gaming cluster.
L’Arc Hotel spans approximately 86,438 square meters and includes hotel rooms, food and beverage outlets, retail space, and the Casino L’Arc Macau premises, which SJM Resorts currently operates under a services arrangement.
Under the transaction, the purchasers will acquire 100 percent of the target company’s issued share capital from current owners Goldarch Holdings Limited and Solar King Investments Limited for an aggregate consideration of HK$1.75 billion. The amount reflects a nominal purchase price for the shares and the settlement of a portion of an outstanding bank loan, based on an independent professional valuation of the property.
“L’Arc Hotel is centrally located within the active cluster of gaming, hospitality and visitor traffic on the Macau Peninsula, where the combined pull of surrounding landmarks and attractions creates opportunities that few locations can match,” said Daisy Ho, Chairman and Executive Director of SJM Holdings Limited. “With the casino currently operating below its full potential, we see considerable room for growth as part of a stronger, integrated network under SJM Resorts.”
The acquisition remains subject to approval from SJM Holdings’ independent shareholders at an Extraordinary General Meeting, as well as regulatory clearance from Macau authorities. Once completed, SJM Resorts will assume direct operation of all facilities at L’Arc Hotel, including hotel accommodation and casino operations.
On the same day, SJM also announced that it has dropped its plan to acquire the Ponte 16 property, adding that Casino Ponte 16 will shut down on November 28th.
