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AFROX HEALTHCARE GETS A UNANIMOUS THUMBS UP

Release Date: 03/09/1999 15:17
Code(s): AFX PSM PSD1
Wrap Text
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

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