Betfred has gained a foothold in the South African betting market and is buying Betting world ((bettingworld.co.za) of success, carried out through the newly established Betfred South Africa brand.
The transaction, which was reportedly at a price of R120m (£ 6.1m), subject to a final adjustment in relation to the net capital of the items of work, was officially closed on May 31st.
The purchase of Phumelela’s online betting industry was reportedly announced by Phumelela Business Rescue Practitioner John Evanswho headed the bankruptcy agreements of the traditional South African racetrack operator.
Last summer a desperate Phumelela Gaming and Leisure suspended its trading on the Johannesburg Stock Exchange (JSE) when the company filed for South African bankruptcy protection.
Fred Done’s Betfred initially expressed an interest in the financially troubled company after the Johannesburg High Court placed its assets under bankruptcy protection, prompting the company to seek additional investors to avoid a full liquidation.
Phumelela agreed on a business bailout plan and was then forced to put his South African racetracks up for sale by creditors.
Betfred originally intended to acquire all of the Phumelela racetracks for ZAR 875 to 925 million (€ 44 to 46 million) compete against each other a fund owned by racing enthusiast Mary Oppenheimer-Slack and her daughter Jessica Jell – members of the richest mining family in South Africa.
Despite its significantly larger rescue offer, Betfred’s offer is was declined audited by auditors who have agreed to support the Oppenheimer Fund as existing creditors of the Phumelela business.
South African business news has branded Betfred’s acquisition of World Betting as a transformative deal for the South African sports betting landscape – which until now has been strictly shielded from domestic incumbents.
Betfred has not yet issued an official statement regarding the acquisition of Phumelela’s World Betting asset, which has been announced by rescue workers.