British bookmaker Betfred has finalized the acquisition of South African online bookmaker Betting World from Phumelela in a deal worth R120M (£6.1M). The deal follows Phumelela’s bankruptcy last summer and puts an end to the British betting company’s efforts to purchase the failing South African gaming company’s assets.
Betfred had previously attempted to purchase all of Phumelela’s racetrack properties for somewhere in the region of £38-40M following a decision by the High Court that required the South African company to sell its horse racing assets.
However, the bid failed to beat a rival bid from a fund backed by South African Mary Oppenheimer who is a member of the country’s richest mining company. Despite the fact that Betfred’s offer was significantly better, auditors decided to back the local offer.
Although Betfred has already established its Betfred South Africa brand, the acquisition of Betting World and its website, bettingworld.co.za is expected to give the company a significant advantage as it looks to gain a foothold in the local betting market.
Betfred has yet to make an official statement on the acquisition but with rescue practitioner John Evans confirming the deal had been finalized on May 31st, the news has been widely reported in the South African press.