Cape Racing sold to Hollywoodbets and GMB Investments

Cape Racing was bought by betting company Hollywoodbets and GBM Investments, a private equity firm led by leading racehorse owner Greg Bortz.

The complex deal is worth R330 million and Bortz will be named executive chairman of Kenilworth Racing, which runs racing in the Western Cape.

The purchase saved Kenilworth Racing from imminent financial ruin, Thoroughbred Horseracing Trust trustees and directors of Kenilworth Racing Pty Ltd (KR) said in a statement.

The deal is subject to regulatory approvals from various bodies such as the National Horse Racing Authority, the Western Cape Gambling Board and the Competition Commission.

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The statement said that the trustees and the KR signed an “expression of interest” (EOI) with GMB for the investment company to invest R130 million in the KR. About 80 million rubles. of this amount will be used to pay off the debt, and 50 million rubles. – working capital.

Separately, the trustees agreed to sell all of their KR shares to Hollywoodbets for a “minimum” amount of R200 million in cash. A Memorandum of Understanding (MOU) was signed and all parties committed to “work together as quickly as possible” to complete the purchase.

“As has been repeatedly reported in the past, the KR is experiencing severe liquidity and cash flow difficulties,” the statement said.

“In short, the current situation is such that, in the absence of immediate action, the ROC may be forced to immediately stop operations.”

The actions taken were to “ensure the long-term viability and health of racing in the Western Cape for years and decades to come.”

Based in Durban and becoming an international betting operator, Hollywoodbets is already heavily involved in the sponsorship of races in KwaZulu-Natal, owning the naming rights to three racetracks in the province and the largest race in South Africa, Durban julywhich was successfully delivered
last weekend.