Wrap Text
Update announcement and renewal of cautionary announcement
Phumelela Gaming & Leisure Limited
(Registration number 1997/016610/06)
(Incorporated in the Republic of South Africa)
Share Code: PHM ISIN: ZAE000039269
(“Phumelela” or the “Company”)
UPDATE ANNOUNCEMENT AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the statement proffered by significant stakeholders and players in the South
African horseracing industry that includes the Company, as reported on in the Business Report of The Star
newspaper dated 12 August 2019.
A copy of the statement is set out below:
“Public announcement on significant stakeholder meeting on the South African horseracing industry
– Thursday 8 August 2019
On 22 July 2019, a meeting was held with various industry players and some significant stakeholders in the
horseracing industry. The purpose of the meeting was to discuss the challenges facing the industry as well
as the scope for co-operation to benefit and improve the industry in South Africa. Those present recognised
that in order for the industry to be more sustainable, it would need to be more inclusive, working and focusing
on a far greater participation by previously disadvantaged persons.
Those present acknowledged that the horseracing industry urgently requires some form of restructuring and
the involvement of various industry players and stakeholders, including the South African government. This
restructure will be crucial in achieving the vision for an inclusive, financially sound and sustainable
horseracing industry.
Amongst the various ideas suggested and discussed was the creation of a single body that would oversee
the horseracing industry in South Africa. Once again, the backing of various stakeholders and the South
African government in creating such a single body will be crucial to its success. Additional due diligence,
process and consultation still has to be researched in order to explore this feasibility.
In this regard, a horseracing industry restructure committee is in the process of being established, together
with the terms of reference for such a committee, which will involve, amongst other things, researching and
recommending potential strategies and opportunities for the industry. The ultimate vision is to get to an
inclusive, financially sound, transformed and sustainable industry for the benefit of all South Africans.
The recent amendments to the Gauteng's Gambling Regulations in respect of the distribution of the tax levied
on punters' winnings is damaging and harmful for the horseracing industry and will create liquidity constraints.
The unilateral removal of the distribution of a portion of the tax levied on punters' winnings by the Gauteng
Gambling Board will create an almost insurmountable problem for the operators. We would urge that the
authorities reconsider this decision in the interest of all employees of the industry.
It is estimated that between 120,000 and 180,000 people, many of whom are breadwinners for their families,
are employed within the industry in South Africa. These include groomsmen, trainers, jockeys, breeders,
bookmakers and owners. Their livelihoods and ability to feed their families will be in jeopardy should this
industry not be a successful one.
Engagements between industry players and stakeholders are ongoing and further updates will be
communicated in due course.
Phumelela Gaming & Leisure Limited is viewed by many in the industry as pre-eminent in the South African
racing and gaming environment. As such, in order for the industry to succeed, this body also needs to
succeed. The executives of Phumelela, Gold Circle and Kenilworth Racing have largely indicated that they
are in support of the above initiatives.
It is imperative that all people involved in this industry, no matter how big or small, need to stand together to
ensure that this industry is placed on a firm footing for the benefit of the future generations.“
Further to the announcement dated 12 July 2019, the Company remains under cautionary as engagements
with the Gauteng Member of the Executive Council responsible for Economic Development, Environment,
Agriculture and Rural Development (“the MEC”) and the Gauteng Gambling Board are still in progress.
Shareholders are advised to continue to exercise caution when dealing in the Company's securities.
Turffontein
12 August 2019
Sponsor: Investec Bank
Date: 12/08/2019 03:01:00
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