Betfred wants to buy South Africa’s biggest horse racing business for almost ZAR1 billion, which is currently in administration.

Phumelela is SA’s biggest horse racing business. It operates four racecourses, more than 200 tote outlets and online sites, as well as a telephone-betting centre.

It also owns Betting World, which has nearly 70 retail outlets and an online platform. In a letter sent to the business rescue practitioners, Betfred proposed an offer of between R875m and R925m for all of Phumelela’s assets. In addition, it will make a loan of R650 million to save the businesses.

In May the business joined a slew of distressed firms to file for business rescue, a local form of bankruptcy protection, after a nationwide lockdown suspended activities in the horse racing industry.

Phumelela, of which former Steinhoff International CEO Markus Jooste was a director and among its largest shareholders, has not been able to stage race meetings since the end of March due to the lockdown.

This has hurt its revenue from racing and betting, the company said in statement.“the best option to ensure the long-term survival of the company and the sport of horse racing, is to implement a business rescue plan,” Phumelela said.