France – Galaxy buys a stake in SBMBy Phil - 27 July 2015
Macau operator Galaxy Entertainment Group is buying a stake in Monaco operator Societe des Bains de Mer et du Cercle des Etrangers a Monaco (SBM) from an independent third party, for €40m.
Galaxy is buying a five per cent share in SBM who operates the four casinos in Monte Carlo saying it saw the deal as ‘potential to develop a strategic long-term partnership.’
Galaxy stated: “This is a minority strategic investment into SBM shares and we are not seeking to purchase more shares. This is the first step in an exciting partnership with SBM, and we look forward to working closely with SBM for our mutual benefit. We will be able to share more details on the potential scope for future collaboration in due course.”
SBM, which is 69.5 per cent state-owned, has also attracted interest from luxury-goods maker LVMH Moet Hennessy Louis Vuitton SE, who is also taking five per cent.
SBM added: “Following this operation, the SBM board of directors will be strengthened by two new board members to be proposed at the shareholders’ meeting. They will provide enhanced knowledge and expertise in the gaming and luxury industries, which should prove extremely beneficial to the company’s future.”
The Monte Carlo operator recorded a turnover of €452.4m for the 12 months ended March 31, 2015, representing a decline year on year of 4.3 per cent.