A major UK sports betting company, Betfred, is targeting the South African market through a planned $54.8 million acquisition of Phumelela, a well-known horse racing entity in the nation. The transaction, estimated at R925 million, encompasses an initial disbursement of R875 million and a possible earn-out of R50 million linked to Phumelela’s subsequent profits. Betfred has also pledged to extend a crucial financial lifeline to the struggling Phumelela by providing loans amounting to R650 million to aid in restructuring its debt, which escalated during the COVID-19 outbreak.
This bold purchase seeks to rejuvenate the South African horse racing and wagering sector, which has encountered substantial hurdles lately. Betfred plans to maintain Phumelela’s complete staff and holdings, guaranteeing steadiness and consistency for the industry. The agreement signifies a considerable investment in the South African economic landscape and underscores the potential for expansion and progress within the country’s horse racing and betting arena.
Betfred entered the competitive race for the equestrian racing company, vying with Mary Oppenheimer Daughters (MOD)’s acquisition offer.
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