Hollywoodbets will acquire all of the Thoroughbred Horseracing Trust’s shares in South Africa’s Kenilworth Racing (KR) amid plans to offset “severe liquidity constraints
Hollywoodbets will gain all of the Thoroughbred Horseracing Trust’s shares in South Africa’s Kenilworth Racing (KR) amid plans to offset “severe liquidity constraints.”
In a lengthy statement to stakeholders, the Trust and KR proposed sure transactions that will have “a important wallop on the time to come of racing inwards the horse opera Cape.”
Currently, KR is veneer a dire financial state of affairs and, absent immediate action, may live forced to “imminently cease all operations.” To avert this outcome, the Trust and KR feature sought straightaway and sustainable sources of liquidity.
To this end, the plank of KR has approved and counter-signed an face of interest group (EOI) with GMB Investments, a companionship represented past Cape Town-based bangtail proprietor St. Gregory of Nazianzen Bortz.
Once approvals are received and sure conditions fulfilled, GMB testament bring home the bacon an immediate R130m ($8m) to KR, of which R50m testament live granted inwards the descriptor of a workings capital facility.
In add-on to the “normal and customary terms typical of such financial arrangements,” GMB will invite an choice from KR to take for an equity stake.
Furthermore, a memorandum of discernment (MOU) has been signed with Hollywoodbets for the purchase of all KR shares and claims owned past the Trust. In return, Hollywoodbets testament present a R200m hard cash injectant upon the successful closure of the transaction.
“Hollywoodbets has already shown its loyalty to horseracing in South Africa through its extensive bangtail ownership and sponsorship, and remains steadfastly focussed on continuing to promote and present dorsum to the summercater it is so passionate about,” said KR.
“Hollywoodbets’ involvement testament ensure that thousands of jobs inwards and around the horseracing industry are maintained and secured.”
Once both deals are completed, there will follow II shareholders inward KR, that is to say Hollywoodbets and GMB. It is anticipated that Bortz testament swear out as Executive Chairman of KR.