“ I hear there were only about 40 people at the Bloomberg presentation yesterday. Talks of Hong Kong proposing a 500k payment to Kenilworth Racing for each meeting as well as 50/50 revenue split on betting turnovers for Kenilworth Racing.
Also rumbles of Hollywood being interested in supporting a Gold Circle takeover of Kenilworth Racing which is likely to ~entail~ include the naming rights of Kenilworth and Durbanville“
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If the insiders’ (Purple management and directors) share dealings are perceived to be “underhanded” but in reality it 100% lawful and complies with all regulatory requirements, then the Purple’s management should have no qualms to provide a detailed response to their critics and the market at large.
All the critics that are alleging SMOKE are probably in possession of information (hopefully not from the same sauce bottle that Andre de Ruyter feeds off) that fuels their claims and considering the following facts, the critics might be onto something:
a) The share price lost almost 60% of value in the last 12 months;
b) Significant volumes of shares were traded by insiders;
c) On 16 November 2022, when the share price lost 40% of its value over the past 6 months, in the interview with founder Alec Hogg, Savage said “the future has never been brighter despite it being a tricky time in the market for growth stocks”
The last statement sounds similar to Riaan du Plessis’s utterances to the market that the Phumelela share price is grossly undervalued based on his outlook for the business while the share price was in free fall, enroute to becoming Savage’s business rescue pet project where his best mates became his enemies.
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Purple Group has attracted the bombastic side eye for some period of time.
I wonder whether Bortz is looking at this potential takeover target - Bortz knows how to turn a piece of Savage's charcoal into a golden nugget - his proven track record speaks volumes.
Apologies everyone. Bob had asked me for the press release and it wasn't sent. My mess up. See below if you havent seen it yet on Sporting Post...
Kenilworth Racing Press Release
Title: Cape Racing – All Systems Go For Hollywoodbets
Subtitle: R330 million deal sees thousands of jobs secured
A brand new chapter was written in the history of Cape horseracing on Monday with the approval by the Competition Tribunal of Hollywood Sportsbook Holdings (Pty) Ltd acquisition of Kenilworth Racing (Pty) Ltd.
The approval is a sequel to agreements concluded in a R330 million deal in July 2022 at a time when Kenilworth Racing was experiencing severe liquidity and cash flow constraints, and effectively facing the prospect of ceasing operations at an enormous cost to jobs, and with collateral reputational damage to South African racing.
Hollywoodbets is now the proud owners of Cape horseracing and in addition to initial loan funding of R64 million, will now, immediately be injecting R200 million into a number of capital projects in order to uplift and improve facilities. In a show of good faith for all stakeholders, and a vote of confidence in the future of the sport, Cape Racing’s crown jewel, Hollywoodbets Kenilworth Racecourse, has been ringfenced.
South Africa’s leading betting operator has declared both the passion and financial capacity to ensure the long-term viability and health of racing in the Western Cape for the years and decades ahead.
Hollywoodbets’ ownership will ensure that thousands of jobs in and around the horseracing industry are maintained and secured. Hollywoodbets holds a Broad-based Black Economic Empowerment Level 3 status.
Hollywood Chief Executive, Suren Rampersadh said that this was a significant shift in Hollywood’s commitment to the horse racing industry. “The transition from our safe space of sponsorship to the responsibility and accountability of ownership is somewhat daunting, and we are fully committed to playing this role.
“But we are not in this alone. We have an incredible relationship with Greg Bortz, who has admirably and selflessly steered the Cape Racing ship during the pre-implementation phase of this transaction. We are delighted that Greg will continue to chair the Board and also become our equity partner. Perhaps, the most rewarding aspect of all will be the restoration of confidence in the future of an industry that has been living in the doldrums for some time. We will be taking our responsibilities very seriously.”
Greg Bortz of GMB Investments (Pty) Ltd has been a key player in the transaction and provided R130 million of liquidity to Kenilworth Racing in the form of a R50 million working capital facility and attended to the repayment of the approximately R80 million of Kenilworth Racing debt at the time of the signing of the agreements.
Bortz, who has acted as Executive Chairman of Kenilworth Racing, has proven to be a livewire and a gamechanger of some stellar proportions and his energy and presence in the hallways of power looks assured.
GMB are likely to convert their loans to equity, in terms of an option written into the original transaction.
“I am delighted with the Competition Tribunal’s final approval of the Hollywoodbets / Kenilworth transaction. This is a massive boost not only for the future of horseracing in the Cape, but for the industry nationwide. Now that I know the Tribunal has approved this transaction, I fully intend to exercise my option and convert my loan to equity. I look forward to partnering with Hollywoodbets and will continue working tirelessly with our respective teams to accelerate the exceptional momentum we have built at Cape Racing over recent months. Onward and upward!” added a thrilled Bortz.
The impact in just nine months on Cape Racing of innovation, restructuring and adjustments to the racing programme, has delivered the most successful Summer Season in years, with field sizes and betting turnovers showing encouraging upturns.
Hollywoodbets and Bortz are looking forward to an even brighter future.
• Media release by Hollywood Sportsbook (Pty) Ltd on Tuesday 25 April 2023.
Last edit: 2 years 3 months ago by Dev.
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