BetFred’s move to South Africa to offer an estimated $54.8M for Phumelela

BetFred has offered to purchase Phumelela in an agreement worth up to R925M ($54.8M) that would see it gain the entirety of the South African horseracing administrator’s benefits. 

The administrator’s offer incorporates an underlying instalment of R875M ($52.8M), followed by another R50M ($3M) which will be paid with certain EBITDA-based execution targets being met by the horseracing industry. 

Once Betfred’s offer is acknowledged, it will give an advance of R650M to be utilized by Phumelala to help pay its obligations, which will be paid in two stages, with the principal R250M to be progressed inside five days after the business salvage plan is affirmed. 

Phumelela has until 1st September to acknowledge the offer, and in the meanwhile, Betfred also promised that the status of all business and staff occupations will be kept as is, meaning no one will lose their jobs in the shifting process. In a statement, BetFred stated that

Our expectation with this offer is to revive a striving industry and, in doing as such, encourage monetary development, work creation and admittance to worldwide business sectors and best practices. Moreover, the venture by an accomplished worldwide partnership into South Africa is probably going to bring about improved development and open doors for South Africa.’

Phumelela had recently reported another alternative deal in which they considered selling  to Mary Oppenheimer Daughters (MOD) as part of the plan to get back on their feet from the pandemic’s heavy blow.