SJM Holdings Invests HK$964M in Macau Government Fund

SJM Holdings announced a HK$963.786 million (MOP992.7 million) investment in the Macao SAR Government Guidance Fund No. 2, Limited Partnership Fund, a move designed to support Macau’s economic diversification and align with national development strategies. The investment, made through its subsidiary SJM Resorts, will simultaneously satisfy existing investment commitments tied to its gaming concession.

The fund, established under Macau’s Investment Funds Law, will focus on areas including emerging industries, technological innovation, and coordinated development with the Greater Bay Area. SJM Resorts’ capital contribution will be drawn from internal resources and is structured to offset equivalent investment obligations under its concession contract, meaning it will not create additional financial strain on the Group. The fund has a 15-year term with potential for two one-year extensions.

The investment aligns with Macau’s broader policy objectives, as outlined in the filing, to move beyond a casino-centric economy. Other limited partners in the fund include Melco Macau, another Macau gaming concessionaire. The decision reflects a collaborative approach among key players in the gaming industry to support the region’s economic transition. The General Partner and Management Entity of the Fund are both ultimately controlled by the Macau Government, ensuring alignment with its policy goals.

As the investment fulfills existing concession obligations, the transaction is classified as discloseable, triggering reporting requirements under the Hong Kong Listing Rules, but does not constitute a connected transaction despite the participation of Melco Macau, a connected party. The terms of the agreement are considered fair and reasonable by the SJM Holdings board.

This investment signifies SJM Holdings’ commitment to Macau’s long-term development and demonstrates a proactive approach to navigating the evolving regulatory landscape. The capital commitment will be fulfilled over the fund’s term, offering SJM a stake in diversified projects supporting Macau’s strategic objectives.