Hollywoodbets, through Hollywood Racing Enterprise (Hollywood), has received the green light from the Competition Tribunal to take over the running of horse racing in KwaZulu-Natal from troubled operator Gold Circle.
This brings Hollywood one step closer to injecting R500m into Gold Circle, pending approval from the KwaZulu-Natal Economic Regulatory Authority, deemed the final step in the merger.
The merger is set to stabilise horse racing, preserve and create jobs, and attract new racehorse owners in the province.
“The tribunal has approved the merger subject to public interest conditions involving Hollywood procurement and socioeconomic development; capital expenditure and skills development commitments; as well as commitments which seek to protect jobs,” the tribunal said.
The takeover follows a turbulent period for SA horse racing, which ground almost to a halt in the early stages of the Covid-19 pandemic.
The acquisition in 2020 of Phumelela by Mary Oppenheimer and Daughters, an entity controlled by late mining magnate Harry Oppenheimer’s daughter Mary Slack, through 4Racing, was a crucial moment that is said to have gone a long way to saving the industry. At the time Phumelela controlled horse racing in Gauteng, the Free State, and the Northern and Eastern Cape.
Hollywood, with an investment from Cape Racing chair Greg Bortz, is set to ensure that the future of KwaZulu-Natal horse racing looks promising. Hollywood, through Cape Racing, stages horse racing events in the Western Cape at the Kenilworth and Durbanville racecourses.
Hollywoodbets, a licensed bookmaker and totalisator operator, which runs retail outlets and online operations nationwide, also earns revenue from limited payout machines (LPMs) in physical outlets.
Gold Circle, which operates the Greyville and Scottsville racecourses in KwaZulu-Natal offering totalisator and bookmaking services, also runs LPMs at its venues. It also owns Gallop TV, which broadcasts horse racing events.
Hollywood and Bortz, the chair-designate, are slated to oversee interim management and strategic decisions for Gold Circle, which they will control entirely.
In 2023, Gold Circle, facing financial difficulties, announced a rescue package from Hollywood and Bortz.
The R500m infusion includes a R400m capital contribution from Hollywood in exchange for shares and loan accounts held by the Gold Circle Racing Club, with the balance coming from Bortz.
Financial Mail reported that Bortz intends to convert his R100m loan into 20% equity in the company.
Bortz, who made a notable entry into the running of local horse racing in 2022 by saving Cape Racing with an emergency loan, is now focused on revitalising the sector. His turnaround philosophy, honed through years of transforming distressed companies across various industries, is now applied to horse racing, aiming to elevate properties in Kenilworth, Durbanville and Milnerton, the Financial Mail reported.
Both Hollywoodbets and Bortz are major racehorse owners across SA. Arguably SA racing’s most prestigious event, the Hollywoodbets Durban July, run on July 6, was won by 10-1 chance Oriental Charm, a colt owned by Bortz and his partners.
Source link : https://www.businesslive.co.za/bd/national/2024-07-30-hollywoodbets-a-step-closer-to-taking-over-kzn-horse-racing/
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Publish date : 2024-07-30 03:16:12
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