Greg Bortz and Hollywood to takeover Cape Racing?

  • Bob Brogan
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1 month 5 days ago - 1 month 4 days ago #845461 by Bob Brogan


THE THOROUGHBRED HORSE RACING TRUST AND KR: UPDATE ON PROPOSED TRANSACTIONSThe trustees of The Thoroughbred Horseracing Trust (the “Trust”) and the board of directors of Kenilworth Racing Pty Ltd (“KR”) (collectively, the “Trustees and KR Board”) would like to inform all stakeholders of certain proposed transactions that will have a significant impact on the future of racing in the Western Cape. As has been publicly disclosed on numerous previous occasions, KR is experiencing severe liquidity and cash flow constraints. In short, the current situation is such that, absent immediate action, KR may be forced to imminently cease operations. In light of these critical issues, the Trustees and KR Board have been working tirelessly to identify immediate and sustainable sources of liquidity to enable racing to continue in the near term, as well as solutions to ensure the long-term viability and health of racing in the Western Cape for the years and decades ahead. To that end, the Trustees and KR Board are pleased to announce certain developments that are intended to achieve those objectives. First, the board of KR has approved and counter-signed an expression of interest (EOI) with GMB Investments (Pty) Ltd (“GMB”), a company represented by Cape Town based owner Gregory Bortz. This EOI provides that GMB, upon receipt of the necessary regulatory approvals and subject to certain closing conditions, will provide an immediate R130 million of liquidity to KR in the form of: (i) The granting of a R50 million working capital facility to KR; and (ii) The repayment of approximately R80 million in indebtedness owing by KR to its current lender. In addition to the normal and customary terms typical of such financing arrangements, GMB will receive an option from KR to subscribe for an equity stake in KR exercisable upon a change of control transaction at KR (the “GMB Option”). Separately, the trustees of the Trust have counter-signed a Memorandum of Understanding with Hollywood Sportsbook Holdings (Pty) Ltd (“Hollywoodbets”) for the purchase of all the Trust’s shares and claims in KR (the “Hollywoodbets transaction”). Hollywoodbets has agreed to make a minimum of R200 million cash infusion into KR pursuant to the successful closing of the Hollywoodbets transaction. The parties intend to work together as swiftly as possible to proceed from the MOU phase to the execution of definitive purchase and sale documentation. Closing of these transactions will be subject to various approvals including but not limited to The National Horseracing Authority of Southern Africa (“NHRA”), The Western Cape Gambling and Racing Board (“WCGRB”) as well as The Competition Authorities. These regulatory approvals may take significant time to complete. Upon the ultimate closing of the Hollywoodbets transaction, and upon the exercise of the GMB Option, there will be two shareholders in KR – namely Hollywoodbets and GMB. In signing the EOI and the MOU, the Trustees and KR Board sought an enduring solution for Cape Racing that ringfenced the Cape’s crown jewel, Kenilworth Racecourse. We are pleased to announce that the MOU contains (in addition to the very sizable cash injection into KR) a provision for the ringfencing of Kenilworth Racecourse. Hollywoodbets has already shown its commitment to horseracing in South Africa through its extensive racehorse ownership and sponsorship, and remains steadfastly focused on continuing to promote and give back to the sport it is so passionate about. Hollywoodbets' involvement will ensure that thousands of jobs in and around the horseracing industry are maintained and secured. In addition, Hollywoodbets importantly holds a Broad-based Black Economic Empowerment Level 3 status. Furthermore, its devotion to providing outstanding customer service will invariably assist KR in providing the best possible owner and punter experience in the province. We are further delighted at the prospect of having Greg Bortz’s involvement following the implementation of the transaction – not simply in terms of his capital, but in terms of his time and expertise. In addition to being a substantial and passionate owner in South Africa, Mr. Bortz’s professional background involved investing in and restructuring operationally and financially challenged businesses. We believe his turnaround expertise and guidance, coupled with his passion for and knowledge of horseracing, will assist the board in returning KR to the status it deserves. Post-closing of the Hollywoodbets transaction and the exercise of the GMB Option, it is anticipated that Mr. Bortz will serve as Executive Chairman of KR. As stated previously in this release, changes to the ownership and board in KR are dependent upon the receipt of the prerequisite regulatory and other approvals. We are unable to estimate the timing thereof. In the interim, the GMB financing will enable KR to continue its racing operations with an eye to exciting developments upon the closing of both transactions. We would like to specifically acknowledge the prior support of Mary Slack and her family who for a period of over two years has assisted KR through significant liquidity hurdles, and for which we are most grateful. While the new ownership and leadership can only commence once all regulatory approvals and conditions have been met, we are excited about what lies ahead once the new team assumes the helm. Most importantly, we are extremely pleased that the future and sustainability of horseracing in the Western Cape has been secured for generations to come. The Trust and KR will be providing regular update announcements as further pertinent information becomes available. 5 July 2022. For further information, please email enquiries to:Donovan Everitt: This email address is being protected from spambots. You need JavaScript enabled to view it. orKirsti Lyall: This email address is being protected from spambots. You need JavaScript enabled to view it.

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Last edit: 1 month 4 days ago by Bob Brogan.

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1 month 4 days ago #845462 by Over the Air
Racings worst kept secret now out. Good luck to them.

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1 month 4 days ago #845463 by Muhtiman
......:ohmy:....

My idea of "help from above" is a sniper on the roof
and a higher power is a hell fire missile armed drone.

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1 month 4 days ago - 1 month 4 days ago #845473 by FUTURA
Does this mean Cape Racing moves to Gallop?

I do know that the NHA have been very unhappy with the camera angles and footage supplied (seen comments in stipe reports)
Last edit: 1 month 4 days ago by FUTURA.

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1 month 4 days ago #845478 by Mac
An executive summary please.


Sent from my Ferrari using Tapatalk

"Lot 226, 2016 NYS, Diamondveld, R1.5m"

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1 month 4 days ago #845484 by Timetopaybackthemoney
Timetopaybackthemoney on topic Greg Bortz and Hollywood to takeover Cape Racing?
So the entire assets including the properties of cape racing have been bought for a measly R 330 million.How come it is always the pals and insiders who get these sweet deals?
What other institutions or individuals were approached ?
Where's the transparency?
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1 month 4 days ago #845493 by Dave Scott
I am sure WSB have the MET for a few years .

Interesting times ahead.

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1 month 4 days ago #845505 by Ash2Ash

So the entire assets including the properties of cape racing have been bought for a measly R 330 million.How come it is always the pals and insiders who get these sweet deals?
What other institutions or individuals were approached ?
Where's the transparency?

Sounds like a saga in the making or season 2 is about to be released.

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1 month 4 days ago #845506 by Greg_Bortz
I am somewhat bemused by the comments. Where is the sweet deal????

As deals go, this is the worst “investment” of all time ! The key “asset” is Kenilworth Racecourse. This asset is ringfenced - it cannot be sold.

The business loses millions each month, and the assets cannot be sold.

Our money is going in to fund the losses, and fix up “assets” that cannot be sold. This is all being done to save racing. I will be lucky to ever get my money back. Or even close to getting my money back!

I will openly invite you to write a cheque and participate alongside me! The reason no one else has stepped up is because this is as financially unattractive a deal as you can find.

So if you want transparency, come invest your money. And see how great this deal is!

I do not expect gratitude. This is standard practice - someone steps up, and then the keyboard warriors start the conspiracy theories.

But I am different. You want transparency, come join for due diligence, and then invest your money. You can then report back to ABC about the supposed sweetheart deal we are getting!

If anyone else wants transparency, then feel free to reach out. My number is 082-523 7591.

I am taking a loss so racing can survive. This is an altruistic, philanthropic contribution - a loss maker! Not some secret sweetheart deal! And if you can’t see that, then you truly don’t understand finance.
The following user(s) said Thank You: Dave Scott, Sylvester, Bob Brogan, mr hawaii, naresh, Craig Eudey, Curlin, Tigershark, Sweet Coetzee, Dev and 5 other people also said thanks.

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1 month 4 days ago #845507 by Greg_Bortz
Summary:

We are putting in R330mm.

This money will go to pay off debts, fund losses, fund improvements in facilities and fund stakes.

Our hope is to return the business to break even (currently it is losing millions a month).

Kenilworth is to be set aside - cannot be touched in perpetuity- to ensure the survival of Cape Racing

We hope to one day receive back part or even all of our money, but don’t expect to make a profit. This is a loss making business in a shrinking industry.

We are doing this out of love for racing. If we don’t, who on earth will??

The end.
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1 month 4 days ago #845509 by CnC 306
Good on you Greg. Your US work ethic brought you your financial success so without a doubt you will turn Cape racing around and point it in the right direction

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1 month 4 days ago - 1 month 4 days ago #845511 by Craig Eudey
Greg, thank you for what you and Hollywood are doing to ensure the survival of Cape racing. Racing needs the Cape to be strong. Take absolutely no notice of these negative keyboard warriors on ABC(you can see how many actual people working in racing contribute due to this type of negative posts) Let's see how many dig into their pockets to help seeing that it is apparently such a great deal. Keep us informed please. :lol: Thanks again.
Last edit: 1 month 4 days ago by Craig Eudey. Reason: English
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