Kantor quits Phumelela Gaming, Tembe steps up

Former Investec boss Bernard Kantor has stepped down as chair of Phumelela Gaming & Leisure after holding the position for only 22 months.

He has handed the reins to Moses Tembe, who joined the board in November 2018.

Sporting Post reported the resignation of Kantor, who was appointed in December 2017. At the time of his appointment, he said: “What is certain is the board of Phumelela are confident about the future of racing in SA, and we look forward to meeting the opportunities and challenges of 2018 and beyond.”

That optimism did not pan out, and in June Business Day reported that “the horse-racing group is having a rough time with its profit under threat by harsh new rules and a bruising battle with the public protector”.

Phumelela’s share price has plummeted dramatically. Its 52week high was R14.50, and the low was R1.49. The closing price on Friday was R2.35.

A week ago, the company announced that its annual results for the 12-month period ending July 31 would be postponed from October 4 to October 25.

Tembe, who joined the Phumelela board as lead independent director, was previously a director and vice-chair of Gold Circle and a director of Gold Circle Racing Club.

Commenting on the appointment, a Sporting Post blogger wrote: “This is all windowdressing. A black chairman will go a long way to appeasing the Gauteng Gambling Board and getting the 3% [tax] back.”

In March, Phumelela said the proposed amendment to Gauteng’s gambling regulations will cost it R75m a year while also damaging the horse-racing industry. However, Tembe does take up his new role with some good news in Phumelela’s corner. On October 1, judge KGB Swain of the Supreme Court of Appeal ruled in favour of Phumelela in its long-standing legal battle with Gauteng and KwaZulu-Natal bookmakers.

Swain stated that “the application brought by the bookmakers was opportunistic and aimed at achieving a monopoly in respect of betting on sports, other than horse racing”.

Another plus factor for the company is the sudden rise in Pick Six pools at Gauteng race meetings. The last two Saturdays have seen gross pools in this exotic bet of R8m and R9m totals usually only achieved at big meetings such as the Vodacom Durban July and Sun Met.

There is no question that Kantor, who cofounded the specialist banking group and asset manager Investec about 40 years ago, has been a tower of strength in the sport of horse racing with his business acumen and bold approach.

In 2008, he was instrumental in Investec signing a sponsorship deal with Epsom racecourse to back the Derby, a race regarded by many as the best in the world. Kantor said at the time: “The price was competitive and we thought we could get great traction for our brand.”

Kantor has enjoyed plenty of success as an owner. He coowns Do It Again, who has won the past two runnings of the Durban July and was voted Equus “horse of the year” at the annual racing awards in August.

In September, he celebrated his 70th birthday with a winner in Singapore.