Dom Zaki

Rob, your point is highlighted in P finding R480m for a 50% interest in another fixed odds operation but they cannot part with R5m to R10m to build longer term capacity for racing.

Shows again that although they have good business acumen there is no love for racing or any real effort to revive the sports waning fortunes.

LSU wrote: Rob, your point is highlighted in P finding R480m for a 50% interest in another fixed odds operation but they cannot part with R5m to R10m to build longer term capacity for racing.

Shows again that although they have good business acumen there is no love for racing or any real effort to revive the sports waning fortunes.

They never found 480 million, they issued shares for the transaction which actually means supabets are rather optimistic on the operator as they took shares at the current price. Suppose after all they got paid a 9 x multiple.... pretty good considering they owned some spar grocery stores prior to this venture. It is a dilution effect to shareholders but in my view a very positive transaction

Hi Flaunt

You are correct, let me rephrase, willing to make a commitment of R470m versus very little commitment towards local racing specifically.

Also hope they will do well with this and I wish them a very successful venture.

Would like to see a more direct commitment to invest in pure racing related solutions, specifically with regards to building longer term capacity.

Top Top trainer and I wish him well.

Family is vitally important and I am glad that you will now have time to spend with them.

Who knows, maybe in a couple of years we see Dom back, better and stronger than before

Who is taking over the yard?

Over the Air wrote: This guy has over 100 horses and can't make ends meet?Guess that he either has bad owners or has had a few good things get rolled whilst being heavily involved. There is no other explanation imvho. How do battlers with 20 and less horses survive?

Originally I put it down to a misprint that Arabian Beat was backed in to 4/1 from 33/1 for the Joburg Merchants.

I'm curious as someone who not very or lets just say at all familiar with the on going in racing or trainer, what would make someone like Zaki give it all up.

Is it costs or Stables, feeds ? Vets ? Owners not paying their share ? All of above ?

The guy had passion as everyone says he was a successful trainer, seems like a nice guy aswell.. but this is what the 2 or 3rd trainer i've heard calling it quits in the last few weeks wasnt there a PE trainer as well. ?

LSU wrote: Hi Flaunt

You are correct, let me rephrase, willing to make a commitment of R470m versus very little commitment towards local racing specifically.

Also hope they will do well with this and I wish them a very successful venture.

Would like to see a more direct commitment to invest in pure racing related solutions, specifically with regards to building longer term capacity.

they made no commitment , the company issued shares. so long as earnings are there to service the new shares in issue it will be a good deal

Only way a trainer with so many horses and paying owners cannot make ends meet is 99% mismanagement of cashflow and mostly its punting and gambling who is the main reason

5. PURCHASE CONSIDERATION


The purchase consideration to be paid by Phumelela for 50% of the shares in Supabets comprises

a ratio of 9.25 multiplied by the normalised net profit after tax to be achieved by Supabets for the

12 month period ending 29 February 2016 (“FY2016”).


Based on the forecast financial information indicated by Supabets’ management for FY2016 the

purchase consideration is estimated at R470 million (“Purchase Consideration”). The Purchase

Consideration is subject to a 20% price adjustment based on the normalised net profit after tax

actually achieved by Supabets for FY2016.


6. SETTLEMENT OF THE PURCHASE CONSIDERATION


A minimum of 35% of the Purchase Consideration is to be settled through the issue of Phumelela

ordinary shares to AF in terms of an acquisition issue (“Acquisition Issue”) and the remainder will

be settled in cash.


The Acquisition Issue is priced at R17.39 per Phumelela share, a 0.3% discount to the 30 day

volume weighted average price up to and including Thursday, 23 July 2015, being the day

immediately preceding the Phumelela board meeting at which the Proposed Transaction was

approved in principle.

Flaunt, you seem to understand these things better than me so I have included some of the details of the deal above.

What portion of the this would you say is to be paid in cash ultimately as they state that a minimum of 35% is payable in shares?

Look forward to your comments.

Seems a few ifs and buts ..... The purchase price could very by upto 20% based on actual profits year end 2016... I am guessing they may get 10 % in cash which still means they backing the vision. The main phumelela shareholders are all smart and I still believe eventually they will de list the company and own it together..