Betfred intends to buy Phumelela in a deal estimated at US $ 54.8 million. And, that would result in the acquisition of all the assets of the South African horse racing operator.
The operator’s offer includes an initial payment, followed by a payment paid based on performance targets based on EBITDA achieved by the business.
If Betfred’s offer is accepted, it will provide a loan to be used by Phumelela to pay off its debts in two stages. With the first amount being advanced in five days after the approval of the rescue plan.
The horse racing operator has until September 1 to accept the offer. In addition, Betfred has promised that all jobs will be guaranteed if the deal is completed and plans to keep Phumelela’s assets together, to benefit South Africa’s races and bets.
In a statement, Betfred assured that “our intention with this offer is to reinvigorate a struggling industry. And, in doing so, facilitate economic growth, job creation and access to international markets and best practices ”.
“In addition, the investment of an experienced multinational company in South Africa will probably result in greater growth and opportunities for the country,” he says in the official note.
Phumelela had previously announced a corporate rescue plan to sell its horse racing business, after the coronavirus pandemic increased its debts considerably.
As such, Betfred’s offer emerges as an alternative to Mary Oppenheimer Daughters (MOD) ‘s plan to acquire the horse racing operator.
About Betfred
Betfred is a British betting house. Its name is a combination of two words, the term “bet” in English which means to bet and Fred, the name of one of its founders, Fred Done.
Initially the company was established with a single store in 1967 in Manchester, England. Since then, the company has significantly expanded its business and achieved global recognition.
