CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER
1. Date of Report (Date of earliest event reported)
Apr 20, 2022
2. SEC Identification Number
179
3. BIR Tax Identification No.
000488051
4. Exact name of issuer as specified in its charter
PHILIPPINE RACING CLUB, INC.
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
SADDLE AND CLUBS LEISURE PARK, BARANGAY SABANG, NAIC, CAVITEPostal Code4110
8. Issuer's telephone number, including area code
02-8805-2091
9. Former name or former address, if changed since last report
-
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class
Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
COMMON
546,627,296
11. Indicate the item numbers reported herein
9
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.
Philippine Racing Club, Inc.PRC
PSE Disclosure Form 4-30 - Material Information/Transactions References: SRC Rule 17 (SEC Form 17-C) and Sections 4.1 and 4.4 of the Revised Disclosure Rules
Subject of the Disclosure
Non-renewal of Racing Franchise
Background/Description of the Disclosure
Philippine Racing Club, Inc. (PRC) has formally decided to separate its horseracing business effective November 2022 by authorizing its wholly owned subsidiary, Santa Ana Park Racing Club, Inc. (SAPRC), to pursue the application of a new horseracing franchise with the Congress of the Philippines in view of the expiration in October 2022 of the current horseracing franchise of PRC. PRC will no longer pursue the renewal of its horseracing franchise under its own name. During its regular meeting on April 19, 2022, the Board of PRC unanimously resolved and approved such decision.
Starting November 2022, PRC will concentrate on its real estate development business while the horseracing business will be run and managed through its wholly owned subsidiary SAPRC. Management believes that this set-up will immediately bring economic benefits to both businesses.
With the expiry of its horseracing franchise in October 2022, PRC will cease its horseracing operation. When this happens, we may expect the following significant items resulting from this event:
• Retrenchment of employees assigned to the horseracing business. PRC has about 175 regular employees but we have not identified at this time who may be affected by this event. This retrenchment will not impact the results of operation of PRCI for 2022 because the Retirement Fund has enough resources to cover the expected separation benefits of affected workforce.
• Net impact in the revenues and expenses of horseracing operation in 2022 not significant. We do not expect any major deviation in the monthly revenues and expenses for 2022 compared with 2021. Under this expectation and with no horseracing operation in November and December 2022, the net financial impact on results of operation for the year is not expected to be material.
• No immediate significant impact on the financial condition of PRC in 2022. PRC remains the owner of the horseracing related assets even after the expiration of the horseracing franchise. As to the future arrangement on the use of the racetrack facility and the betting system, we do not know yet at this time. But any business arrangements that may be agreed will definitely be beneficial to both PRC and SAPRC.
• Major impact on the separate financial statements of PRC in 2023 but not on the consolidated financial statements. The financial impact of this cessation in horseracing operation will be felt in 2023 but for consolidation of financial statements, we do not expect any significant impact because SAPRC is a wholly owned subsidiary of PRC.
• Potential employment opportunity. As to the employees and workers who will be affected by the expected retrenchment, they will have a better chance of similar employment with SAPRC. Upon approval of a new franchise, SAPRC will basically take over the horseracing business of parent company PRC, SAPRC will require same operation and similar number of labor complement as that of PRC during its horseracing operation until October 2022.
Other Relevant Information
SAPRC is a wholly owned subsidiary of PRC. SAPRC was incorporated and registered with the Securities and Exchange Commission on 19 February 2020. SAPRC was formed to engage in various gaming businesses and it is originally envisioned to apply for the renewal of the horseracing franchise of parent company PRC.
Philippine Racing Club, Inc.PRC