SJM wins refinance nod as Macau extends licenses

SJM (0800) has earned the approval of the Macau government and all banks to refinance its syndicated loans, while most of the satellite casinos can continue to operate, chairwoman Daisy Ho Chiu-fung said at the annual general meeting yesterday.

The refinancing is for syndicated loans worth HK$19 billion (US$2.4-billion), according to reports.

Ho's comments came as Macau's Economy and Finance Secretary said yesterday that casino will have their licenses extended by six months, allowing more time for a highly anticipated rebidding process in the world's biggest casino hub.

Lei Wai Nong said Macau's casino licences that were due to expire on June 26 will be extended to December 31, according to a government statement.

Authorities would start the rebidding process once the city's legislature had passed a revised law, he said.

Ho, meanwhile, expects business to improve during the summer due to Macau's legal ruling that satellite casinos do not need concessionaire's premises to operate their business, while the casinos do not need to return the venues to the government.

In response to the company's loss, Ho said SJM's refinancing project has been approved by the Macau government and all syndicates, so she is not worried about pressure on liquidity.

Ho also said it is expected that the revenue generated from the casinos in Macau and the number of Macau tourists will be better than the previous two months, though there may not be a great improvement in casino revenue this month.

The shortened quarantine period to 10 days may help to boost the number of tourists visiting Macau, Ho added.