Mar 2017 Financial News

Supreme Ventures arranges $650 million with Sagicor for Caymanas operation

Mar 08, 2017

Supreme Ventures Limited (SVL) has advised that its tenure as the new operators of Caymanas Track Limited (CTL) will commence on March 7, 2017, through its wholly owned subsidiary Supreme Ventures Racing & Entertainment Limited (SVREL).

SVL through SVREL has the option to lease property at Caymanas for 60 years.

The gaming company’s deal with the Government of Jamaica for the acquisition of the operations of Caymanas Track Ltd (CTL) was signed on February 10, 2017.

SVL submitted its bid in September 2015 and was approved as the preferred bidder on March 15, 2016.

Meanwhile, in notes attached to the company’s financials for the year ended December 2016, the group disclosed that in December it obtained a credit facility totalling $650 million from Sagicor Bank Jamaica Ltd, to support the Group’s acquisition of the Caymanas Track operations.

The loan facility includes a moratorium of 12 months on principal payments, with interest accruing at a rate of nine per cent per annum, for five years. The group is yet to outline its full acquisition and investment costs.

CTL operations include horse racing and simulcast promotion, as well as pari-mutuel pool operations.

The acquisition, SVL said in a notice issued through the Jamaica Stock Exchange (JSE), provides for the purchase by SVREL of chattels owned by CTL; and a 30-year renewable lease of CTL’s property at Caymanas Park in favour of SVREL, extendable at the option of the company for a further term of 30 years.

SVL also indicates that the move into this segment of the gaming industry has caused it to fall under the regulatory oversight of the Jamaica Racing Commission (JRC); the National Environmental and Planning Agency (NEPA); the South East Regional Health Authority (SERHA) and the Water Resources Authority (WRA).

It was also noted that the Government of Jamaica will be monitoring SVREL’s development plans through the Project Monitoring Committee, which was established as a part of the divestment agreements.

The company said that starting on March 3, 2017, SVL will begin holding stakeholders meetings with CTL staff members to whom temporary contracts will be offered.

As at December 31, 2016, SVL had total assets of $ 731 million.

Earnings have been flat, year over year. During the last financial year, it made net profit of $1.18 billion on revenues of $44.9 billion. This compared to net profit of $1.18 billion on revenues of $43.85 million in 2015.

Earnings per stock for 2016 were slightly reduced to 44.69 cents compared to 44.89 cents in the prior year.

The company had cash resources of $808.29 million at year end 2016 compared to $1.12 billion the year before.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday March 8, 2017

http://www.jamaicaobserver.com/business/Supreme-Ventures-arranges--650-million-with-Sagicor-for-Caymanas-operation_91773