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Betfred offer up to R925m for Phumelela

By Gavin Dank - Contributor
1 year ago

UK bookmaker Betfred has made an offer of up to R925m for all the assets of embattled betting and horse racing company Phumelela Gaming & Leisure, which is trying to emerge from business rescue.

The company, which currently has no presence in South Africa, sought protection from creditors’ say against itself or its assets in May after the COVID-19 pandemic struck amid weak operational performance.

In their offer, Betfred will pay between R875m and R925m for all of Phumelela and it will throw in another R650m to settle creditors’ claims.

Betfred is one of the biggest bookmakers in the UK with more than 1,500 betting offices.

Betfred’s offer was made last month and comes as stakeholders are expected to vote on the group’s business rescue plan in a meeting scheduled for today (1st September). However, the offer would lapse if creditors do not accept it during the meeting.

In a bid document dated August 25 and posted on Phumelela’s website, Betfred has said: “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.”