PHILIPPINE RACING Membership, Inc. (PRC) introduced on Wednesday that it’ll concentrate on actual property improvement, with its horseracing enterprise to be spun off to a wholly-owned subsidiary.
“PRC will now not pursue the renewal of its horseracing franchise underneath its personal identify,” the corporate stated in a disclosure.
Santa Ana Park Racing Membership, Inc. (SAPRC), its wholly-owned subsidiary, will apply for a brand new horseracing franchise with the federal government as the corporate’s present allow is because of expire in October.
Beginning November 2022, PRC stated it’s going to consider its actual property improvement enterprise, whereas the horseracing enterprise will probably be run and managed by SAPRC.
The corporate stated this new setup will “instantly carry financial advantages to each companies.”
PRC stated it’s going to bear a couple of modifications within the coming months because of the enterprise shift, together with the retrenchment of staff assigned to horseracing operations.
“PRC has about 175 common staff however now we have not recognized at the moment who could also be affected by this occasion. This retrenchment is not going to affect the outcomes of operation of PRC for 2022 as a result of the retirement fund has sufficient sources to cowl the anticipated separation advantages of affected work drive,” it stated.
“As to the staff and staff who will probably be affected by the anticipated retrenchment, they are going to have a greater likelihood of comparable employment with SAPRC. Upon approval of a brand new franchise, SAPRC will principally take over the horseracing enterprise of mum or dad firm PRC, SAPRC would require identical operation and related variety of labor complement as that of PRC throughout its horseracing operation till October 2022,” it added.
The corporate added that the web affect of the change on its revenues and bills is not going to be vital.
“We don’t anticipate any main deviation within the month-to-month revenues and bills for 2022 in contrast with 2021. Beneath this expectation and with no horseracing operation in November and December 2022, the web monetary affect on outcomes of operation for the 12 months isn’t anticipated to be materials,” PRC stated.
“PRC stays the proprietor of the horseracing associated belongings even after the expiration of the horseracing franchise. As to the long run association on the usage of the racetrack facility and the betting system, we have no idea but at the moment. However any enterprise preparations that could be agreed will certainly be useful to each PRC and SAPRC,” it added.
On the inventory alternate on Wednesday, PRC shares remained unchanged at P5 apiece. — Luisa Maria Jacinta C. Jocson