A R1-billion deal that will see 10% of hospital group Network Healthcare Holdings (Netcare) acquired by broad-based empowerment groupings will be put to the group’s shareholders for the vote on September 16, the group said on Friday.
If approved, the deal would become effective on October 1, it added.
The broad-based grouping, referred to as Health Partners for Life, comprises the Mother & Child Trust, which will hold 7,5% of the 10% stake in the group, the Healthy Lifestyle Trust which will hold 5%, the Patient Care Trust (37,5%), the Passionate People Trust (20,5%) and the Physician Partnerships Trust which will hold 30% of the 10% stake.
Netcare said it envisaged a funding structure that would be sustainable irrespective of equity market conditions and interest rate fluctuations and would comply with the ownership requirements of the draft Codes of Good Practice BBBEE and the imminent Healthcare Industry Charter.
It added that Netcare was committed to achieving sustainable black ownership of more than 25%. “Netcare is committed to transforming healthcare, addressing inequalities and mobilising the potential of all South Africans with the objective of contributing towards sustained economic growth, development and social transformation in South Africa,” Netcare said.
“A positive and proactive response from the private healthcare sector through the implementation of meaningful transformation will unlock the sector’s potential and enhance its growth and, more importantly, will ensure better care to more people,” it added.
The deal will increase — directly or indrectly — the total empowerment holding in Netcare to 27%.
Netcare said the cost to existing Netcare shareholders of the transaction over the expected term of the funding structure was estimated to be equal to 3,2% of the group’s market capitalisation based on the closing Netcare share price on June 29.
At 12.10 on Friday, Netcare’s share price on the JSE Securities Exchange was down 1,14% or seven cents at 606 cents a share.-I-Net Bridge