Remgro trying to bankrupt WP?

Cape Town - The WP Rugby Union is reportedly struggling to pay back its debt to investment company Remgro

Afrikaans newspaper Rapport indicated on Sunday that WP Rugby's debt to Remgro has grown from R40 million to almost R53 million after the union failed to make interest payments.

The report added that the WP Rugby Union has not paid interest on the loan for some time and that interest over the next three years could push the loan amount up to R83 million.

Adding to the union's financial woes is lower than expected supporter numbers for the Stormers' Super Rugby home matches, the ongoing battle between the professional and amateur arms of the union, as well as the fact that 28 owners of corporate boxes had given up their contracts.

Remgro, an investment holding company based in Stellenbosch, bailed out WP Rugby with a personal loan at the end of 2016 when the union faced bankruptcy.

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Fantastic interest rates... Seems like the same idiots who signed the advertising contract that put them out of business and forced the formation of a new company/name, are responsible for the deal with Remgro...

So the Remgro group with the personal intervention by Rupert gave  the Stormers a R40  million rand loan at a rate equivalent to bank loan rates.   They have not repaid anything  and every year there is interest charge on outstanding balance (ie loan plus interest).

What do you expect from Remgro to do.   They made a determined effort to save the Stormers from bankruptcy in 2016 and after the loan was made the WP management showed them  the "up yours" sign and continued wasting money trough corruption and mismanagement.   

So Rupert wen t to the Bulls and took over 50% of the shareholding of the Bulls and has a strong input in appointments who will manage the funds of the franchise on a sound basis.   He ahs done exactly what Saad did iro the Sharks.

I think it is high time that Remgro pulled the plug on that disgusting and self-seeking buggers who run the WP Franchise.   Maybe we should get some sanity when the whole amateur infrastructure collapses.  

“So Rupert went to the Bulls and took over 50% of the shareholding of the Bulls and has a strong input in appointments who will manage the funds of the franchise on a sound basis.   He ahs done exactly what Saad did iro the Sharks.”

No. That is not what happened. South Africa investments Limited (SAIL) through Marc Group (IIRC) had a 50% in the Bulls for ages. Remgro obtained that shareholding. Rupert/Remgro themselves never initially invested in the Bulls. 

https://www.iol.co.za/business-report/companies/sail-buys-another-rugby-team-797648

If you read that article about SAIL’s purchase of a share in SWD, you will notice that, at the time, they were already shareholders in the Blue Bulls, among others. They, SAIL, made the initial investments. Remgro then purchased/acquired their shareholding. 

I say purchased/acquired because I cannot remember whether Remgro actually bought out the SAIL shareholding or whether they had some vested interest in SAIL. I somehow seem to recal that they were minor shareholders in SAIL, at the time, and at a later stage bought out the entire SAIL shareholding, in the sports teams, from SAIL. 

This hardely seem like standard bank interest rates. The amount has doubled in a few years. 

Has nothing been paid back yet? Or is it just the extra interest that is not being paid back.

No doubt most of the profits are being stolen.

Do they plan to terminate WP again, and then rename it?

Ceradunce

As per normal you are totally ignorant of what happened.     Whether the 50% shareholding was taken over from anybody else by Remgro is not the point at all - fact is Remgro now owns 50% of the Bulls shareholding.   

The Bulls ran the Union as per normal until recently when Remgro insisted on measures to professionalize the management.   Amongst others were -

*   the appointment of Mitchell in 2018 as coach  and the resultant release of him of his contract;

*    the appoint of its latest  CEO from Mossel Bay'

*    the appointment of Human as the Bulls coach; and

*    the appointment of Zondagh as Director of Rugby.

The Bulls upwards curve is entirely due to the above - which were widely reported ion the media.   You should not write ignorant garbage on site - it makes you  look like the fool you really a re. .     

See what happens when underachievers give themselves a pay rise!?

SB

Doubled in a few years?   The loan was R40 million and is now R53 million.   The interest is exactly what banks charge - but unlike banks they would have called up the loan when nothing was paid in redemption or interest who would have instituted recovery processes by 2017 - the loan agreement apparently has penalty clauses in the case of non-compliance and not immediate recovery.   

Since you do not know the real situation  your assumptions are not really appropriate .  .     

"The report added that the WP Rugby Union has not paid interest on the loan for some time and that interest over the next three years could push the loan amount up to R83 million."

You live in England - in SA the average interest of bank loans is circa 10%  - so work that out over an 8 years period and see where you get,  

Clevermike, can you confirm for certain that no money has been repaid? Do you have any online credible source. Meyer Bosman's mother does not count, or the father of Flab Malherbe 

The deal was signed less than 2.5 years ago. With another 3 years, the repayment is more than double. I count that like just over 5 years.

There has ben various newspaper reports that NO Money has been repaid on the loan at all - neither on the interest payable,   That si why Remgro walked out of the deal with WP and walked out of the situation.   They asked for some changes that would benefit the Union and save it and it was not forthcoming.

Stop calling up shit the way you do.   Remgro is not a piss p9ot UK company - it was the major shareholder in Saracens Club.   Last year it sold their shares in the Company and they would never leech on anybody. 

Sorry - BSter - it was in response to what SB wrote - because you are worth ignoring anyway.  So 50% is not a major shareholder shitbrain? 

Hall Of Fame

34939 posts

You live in England - in SA the average interest of bank loans is circa 10%  - so work that out over an 8 years period and see where you get,  

Work it out yourself,   Anyway our courts are reasonable and very sure about when they make judgements on bankruptsy issues - if it is R83 million as claimed in the media report - it will have to be proved by the claimants that the money is due legally.  In any event newspapers are very poor sources to be used  on issues like this.   

I smell a rat though - it has nothing to do with the amount due - but rather that Remgro may use the situation to take over WP Rugby lock stock and barrel.    Rupert is a lover of rugby and for him R83 million is small change - he is probably more interested  to save the Union than to put it out of business totally.   The R83 million is probably what he would earn in a fortnight though his shareholding in Ali Baba - where his company has a 30% shareholding.              

Ceradunce

Do you understand everything ever.  I never said majority shareholder - read the sentence again - I said major shareholder.

Sounds like Rupert the bear is your hero and can do no wrong. 

Hopefully, rugby can be privatised in SA, and brains can be brought into the operation. Someone with the experience of Rupert would no doubt add lots of value. 

Additionally, these super rich people also invest so much into sports clubs, that they are not even worried about making much of a profit. They are business people, but they are not restricted by making a profit - as it is more to them than a company. 

S B

Not interested in Rupert - he is interested  in rugby and golf as a pastime and doesn't mind spending a Billion here and there,   So he is a good when it comes to help rugby in SA,  His sister got interested in breeding race horses - so his wife got interested too.   She got the top cl;ass breeding stallions in SA.   She is making a fortune from it,   She would be paid R300 000 for one of the stallions covering a mare and she had sic stallion.   That means about R18 million a month.  So she sponsors a race day at Kenilworth (the Queens Plate)- with price money running into about R12 million.   

Why worry about  spending  a bit of money like R100 nillion for fun?   

S B

Not interested in Rupert - he is interested  in rugby and golf as a pastime and doesn't mind spending a Billion here and there,   So he is a good when it comes to help rugby in SA,  His sister got interested in breeding race horses - so his wife got interested too.   She got the top cl;ass breeding stallions in SA.   She is making a fortune from it,   She would be paid R300 000 for one of the stallions covering a mare and she had sic stallion.   That means about R18 million a month.  So she sponsors a race day at Kenilworth (the Queens Plate)- with price money running into about R12 million.   

Why worry about  spending  a bit of money like R100 nillion for fun?