Philippine Racing Membership to transform horse racing enterprise into subsidiary

Philippine Racing Membership, Inc. (PRC) introduced on Wednesday that it could deal with actual property improvement, spun off its horseracing enterprise to a completely owned subsidiary.

“PRC will now not pursue the renewal of its horseracing franchise below its personal title,” the corporate mentioned 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 expires in October.

From November 2022, the PRC mentioned it could deal with its actual property improvement enterprise, whereas the horseracing enterprise can be run and managed by SAPRC.

The corporate mentioned this new setup will “convey rapid financial advantages for each companies.”

The PRC mentioned it could bear some modifications within the coming months on account of modifications in enterprise, together with layoffs of workers assigned to horseracing operations.

“There are about 175 common staff within the PRC however we have now not recognized at the moment who might have been affected by the incident. This layoff won’t have an effect on the outcomes of operations of the PRC for 2022 because the retirement fund has adequate sources to cowl the anticipated severance advantages of the affected workforce,” it mentioned.

“For workers and staff who shall be affected by the anticipated layoffs, they’ll have a greater likelihood of equal employment with SAPRC. Upon approval of a brand new franchise, SAPRC will seamlessly take over the horseracing enterprise of guardian firm PRC, requiring SAPRC to have the identical operation as PRC and the identical variety of labor enhances throughout its horseracing operation till October 2022,” it added.

The corporate mentioned the web impact of the change on its income and bills wouldn’t be important.

“We don’t anticipate any main deviations in month-to-month income and bills for 2022 in comparison with 2021. Underneath this expectation and with no horseracing operations in November and December 2022, the web on the outcomes of operations for the yr The monetary impression will not be anticipated to be materials, ”the PRC mentioned.

“PRC continues to personal horseracing-related property even after the termination of the horseracing franchise. As to future preparations on the racetrack facility and use of the betting system, we don’t but know at the moment. However any business preparations have been agreed upon. which will definitely be useful to each the PRC and the SAPRC,” it added.

Shares of PRC remained unchanged at P5 on the inventory trade on Wednesday. , Luisa Maria Jacinta C. Jackson

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