Betfred Plans Major Investment in SA Market After Betting World Purchase
The Betfred group has said that it plans to make major investments in South Africa’s sports betting markets, after finalizing the purchase of Phumelela subsidiary, Betting World.
The deal was completed on the first of this month.
The stakeholders are seeking to fulfill regulatory requirements as determined by South African gambling laws governing the transfer of shareholding in the company.
While a final figure for the deal is yet to be announced, it is understood that it is in the region of R124,000,000 ($8.7 million). The sides will announce a final, adjusted figure as soon as the deal has fulfilled its regulatory requirements.
The CCO of Betfred, Phil Siers, said in a media interview that he was “delighted” to see his group’s services extend to South Africa. He added that Betfred was looking forward to becoming a leading South African bookmaker and providing first class service to all its customers.
According to Siers, the last year has been an extremely difficult period for all businesses around the globe.
“But Betfred is excited about the future of Betting World and intends to make a major investment in Africa over the coming years,” he said.
In 2020, Phumelela, which was forced to suspend trading on the JSE due to financial woes, rejected a bid made by Betfred to purchase the entire company in a deal worth R785,000,000 ($55 million).
However, Betfred failed in its takeover attempt after Phumelela instead accepted Mary Openheimer Daughters to act as its creditors.
It should be noted that Betfred’s offer was significantly higher than MOD’s, however auditors refused to review the company’s bid since they had previously agreed to back the Oppenheimer fund, part of the richest mining family in South Africa.
Betfred still managed to enter the South African market by purchasing Betting World and will now establish a new Betfred South Africa brand.