SJM Holdings Ltd., controlled by Macau casino tycoon Stanley Ho, scrapped a $606 million plan to buy the Hotel Lisboa and a development site in the city from its parent because of the financial crisis, Bloomberg News reported today.
“Whilst the group’s internal financial resources are sufficient to complete the acquisition of the two properties, the proposed redevelopment of the Lisboa site would have imposed an unnecessary burden on its financial resources,” SJM said in a Hong Kong exchange filing.
SJM and parent company
will instead develop the Hotel Lisboa site jointly. This won’t happen for “some time” though because of market conditions, SJM said. Casino revenue in Macau, the only city in China where casinos are legal, slumped 15.5 percent in February from a year earlier, Portuguese news agency Lusa reported this month, citing data collected from operators.
SJM had planned to buy 15/16 of Hotel Lisboa from its parent. It already owns the other part. The two companies are yet to decide on the ownership stakes under the new plan, SJM said.
“Whilst the group’s internal financial resources are sufficient to complete the acquisition of the two properties, the proposed redevelopment of the Lisboa site would have imposed an unnecessary burden on its financial resources,” SJM said in a Hong Kong exchange filing.
SJM and parent company
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SJM had planned to buy 15/16 of Hotel Lisboa from its parent. It already owns the other part. The two companies are yet to decide on the ownership stakes under the new plan, SJM said.