Phumelela cleared to control tote betting

According to BDLive, the Competition Tribunal has approved two related transactions that will ultimately put horseracing and tote betting in the Western Cape under the management of Phumelela Gaming and Leisure.

As a result of the new arrangements, Phumelela will control tote betting in eight of the country's nine provinces.

The deal involves the assets and operations of Western Cape racing first being sold to Kenilworth Racing, a Cape-based organisation controlled by an association of racehorse owners and members of the Western Province Regional Racing Association.

All shares in Kenilworth Racing will then be sold to the Thoroughbred Horseracing Trust - a non-profit organisation created to promote the interests of everybody affected by the sport in South Africa. Its only source of revenue comes from its 35.26% shareholding in Phumelela. The Competition Tribunal approval is on condition that no merger-specific retrenchments take place within two years of the date of the transaction, BDLive reports.

Read the full article on http://www.bdlive.co.za