Go Back Email this Link to a friend

Afrox Healthcare Gets A Unanimous Thumbs Up

Release Date: 03/09/1999 15:17:53      Code(s): AFX PSM PSD1
3 SEPTEMBER 1999
AFROX AND PRESMED SHAREHOLDERS TODAY APPROVED THE FORMATION OF SOUTH AFRICA'S
LEADING PRIVATE HEALTHCARE GROUP BY VOTING IN FAVOUR OF MERGING AFROX'S
HEALTHCARE INTERESTS WITH THOSE OF PRESMED.
THE MERGER, WHICH IS EFFECTIVE TUESDAY, 14TH SEPTEMBER, WAS UNANIMOUSLY
SUPPORTED.
AFROX'S HEALTHCARE WILL NOW BE REVERSE LISTED INTO PRESMED. THE NAME WILL BE
CHANGED TO AFROX HEALTHCARE LIMITED AND LISTED UNDER THE NEW NAME ON THE
JOHANNESBURG STOCK EXCHANGE ON MONDAY, 4 OCTOBER 1999.
THE MERGED COMPANY HAS ASSETS OF R1 BILLION, AND IN ITS FIRST FULL YEAR OF
TRADING WILL SHOW REVENUES EXCEEDING R2,3 BILLION, WITH OPERATING INCOME OF
R300 MILLION PLUS.
AFROX WILL HOLD 76 PERCENT OF AFROX HEALTHCARE, WITH THE EMPOWERMENT GROUP,
REAL AFRICA HOLDINGS AND THE GRILLENBERGER CONSORTIUM HOLDING 5 PERCENT EACH.
THE GRILLENBERGER CONSORTIUM IS HEADED BY CARL GRILLENBERGER, THE RETIRING
CHAIRMAN AND FOUNDER OF PRESMED. THE GENERAL PUBLIC HOLDS THE BALANCE OF 14
PERCENT.
AFROX'S EXECUTIVE CHAIRMAN AND AFROX HEALTHCARE'S NEW CHAIRMAN, ROYDEN VICE,
SAYS, "AFROX ENTERED THE PRIVATE HOSPITAL BUSINESS FIFTEEN YEARS AGO. WE ARE
EXCITED BY THE OPPORTUNITY THE ENLARGED GROUP, WITH 71 HOSPITALS AND SAMEDAY
SURGICAL CLINICS, WITH 7 100 BEDS, WILL PRESENT FOR US."
"IN ADDITION," SAYS VICE, "AFROX HEALTHCARE IS BROADER BASED THAN OTHER PRIVATE
HOSPITAL GROUPS AS IT HAS A STRONG HEALTHCARE SERVICES LEG. THE COMPANIES ARE
THE LEADERS IN THEIR FIELDS OF EXPERTISE."
THE HEALTHCARE SERVICES COMPANIES INCLUDE AFROHC, AN OCCUPATIONAL AND PRIMARY
HEALTHCARE BUSINESS, WHICH LOOKS AFTER SOME 85 000 EMPLOYEES IN 140 COMPANIES
FROM 125 CLIENT OWNED ON-SITE CLINICS AND HOSPITALS. DIRECT MEDICINES, A
CHRONIC MEDICATION MANAGEMENT COMPANY, PROVIDES 180 000 MEDICAL AID MEMBERS AND
THEIR DEPENDANTS EVERY MONTH THROUGH CONTRACTED DISPENSARIES. HOSPITAL MEDICAL
SYSTEMS HELP FACILITATE OVER 20 MILLION LABORATORY TESTS A YEAR AND MANAGES
STORAGE AND DISTRIBUTION OF MEDICAL INFORMATION TO MEDICAL SPECIALISTS.
VICE SAYS, "WE HAVE AN EXCELLENT TEAM IN THE NEW COMPANY AND MANAGEMENT WILL
START IMMEDIATELY ON REALISING THE SYNERGISTIC BENEFITS THE MERGER HAS CREATED.
THE COMPANY HAS A COMPREHENSIVE GEOGRAPHIC SPREAD OF HOSPITALS WHICH ENSURES
THAT THE MAJORITY OF MEDICALLY INSURED SOUTH AFRICANS WILL NOW HAVE DIRECT
ACCESS TO OUR FACILITIES."
RICK HOGBEN, AFROX HEALTHCARE'S MANAGING DIRECTOR, IS BULLISH ABOUT THE FUTURE
OF PRIVATE HEALTHCARE IN THIS COUNTRY, SAYING THAT PRIVATE SECTOR HOSPITALS
HAVE SHOWN STRONG GROWTH IN THE PAST TWENTY YEARS. "IN 1980, THERE WERE 72
PRIVATE HOSPITALS WITH 8 220 BEDS. TODAY, THERE ARE 238 PRIVATE HOSPITALS WITH
A TOTAL OF 22 000 BEDS. ALTHOUGH THIS ONLY REPRESENTS 18 PERCENT OF THE TOTAL
NUMBER BEDS INCLUDING THE STATE, IT HAS GROWN FROM 7,8 PERCENT IN 1980."
"WORLD-WIDE DEMAND FOR PRIVATE QUALITY HEALTHCARE CONTINUES TO GROW AND SOUTH
AFRICA IS NO EXCEPTION TO THIS TREND. WE LOOK FORWARD TO PLAYING A GREATER ROLE
IN THE FUTURE, ESPECIALLY IN PARTNERSHIP WITH THE STATE. AT THE SAME TIME, WE
SEE VERY STRONG GROWTH IN OUR ALLIED HEALTHCARE SERVICES BUSINESSES AND WE ARE
WELL POSITIONED TO SATISFY THE INCREASED DEMAND FROM MINING, INDUSTRY AND
COMMERCE TO PROVIDE ACCESS TO QUALITY HEALTHCARE FOR THEIR EMPLOYEES,"
CONCLUDES HOGBEN.
THE PRESMED SHARES TRADING FRIDAY AT 315 CENTS. WITH 222 MILLION SHARES IN
ISSUE, AFROX HEALTHCARE LIMITED WILL START WITH AN INITIAL MARKET
CAPITALISATION OF SOME R700 MILLION.
ENDS
ISSUED BY AFRICAN OXYGEN LIMITED (AFROX)
FOR FURTHER INFORMATION: CHRIS FIELDGATE
(011) 490-0554
CELL: 082 495 1481
BACKGROUND INFORMATION ON AFROX IS AVAILABLE ON INTERNET: WWW.AFROX.COM



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.