UK gaming behemoth Betfred has proposed an acquisition of the South African horse racing enterprise, Phumelela, in a transaction valued at up to R925 million (roughly $54.8 million). This potential deal emerges as a much-needed rescue for Phumelela, which has been facing financial distress due to the effects of the COVID-19 crisis.
Betfred’s proposition consists of an initial payment of R875 million, with a supplementary R50 million contingent upon Phumelela’s racing operations achieving certain profit objectives. In an effort to assist Phumelela in tackling its debt, which had escalated to over R600 million, Betfred has committed to supplying R650 million in two separate payments. The initial sum of R250 million would be disbursed within five days of the recovery plan receiving approval.
This agreement, encompassing a guarantee from Betfred to maintain all of Phumelela’s holdings and personnel, would result in the incorporation of Phumelela’s activities into Betfred’s existing portfolio. Betfred views this acquisition as a chance to invigorate the South African horse racing and wagering sector, with goals of promoting economic expansion, generating employment opportunities, and unlocking global prospects for the industry.
Phumelela has been given until September 1st to formally agree to the offer.
It seems a heated competition is emerging! The offspring of Mary Oppenheimer, who has sought to acquire this horse racing enterprise, just received a proposition from Betfred. This presents her with an alternative choice to consider.