MONDAY, 11.00AM
INVESTMENT companies belonging to the Congress of SA Trade Unions and its affiliates, together with a black doctors’ organisation, have clinched a R220-million stake in Netcare’s R920-million acquisition of private hospital group Clinic Holdings.
The deal, in which Netcare acquired Barney Hurwitz’s controlling stake in Clinic Holdings, which owns 17 hospitals and Hurwitz’s eight private clinics, makes Netcare the biggest hospital group in SA.
Cosatu’s investment arm Kopano ke Matla, the SA Railway and Harbour Workers’ Union Investment Holdings, the National Union of Metalworkers of SA, and the National Education, Health and Allied Workers’ Union have jointly acquired 22% of Netcare for R220-million, while the SA Medical and Dental Practitioners bought 10% for R50-million.
The shares were sold at a discount price of R1,60, when the share price stood at R2. The unions will form a company called Mtilonde to raise the finance to fund their stake. According to Kopano executive director Tumelo Motsisi, preferential shares will be issued to raise part of the required funds, while the remainder will be raised by inviting other unions to take part in the deal.