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Phumelela Gaming and Leisure is in talks to raise R300 million to stave off collapse as measures to contain the coronavirus curtail horse-racing and other sporting events, according to people familiar with the matter.
Talks with a capital provider and banks are underway to salvage at least part of the business, said the people, who asked not to be identified as the details of the terms are private.
The Johannesburg-based company has been unable to stage events since the government banned all large gatherings in mid-March.
If Phumelela can’t raise the money, the board will have to decide “whether there is any reasonable prospect that the group’s business can be rescued, or whether to make application for voluntary liquidation,” the group said in a statement on Monday. — fin24
Online Reporter