NTC - Netcare - Acquisition by Netcare`s UK subsidiary general healthcare group

NTC - Netcare - Acquisition by Netcare`s UK subsidiary general healthcare group 
of nine Nuffield Hospitals                                                      
NETWORK HEALTHCARE HOLDINGS LIMITED                                             
(Registration number 1996/008242/06)                                            
JSE share code: NTC                                                             
ISIN number: ZAE000011953                                                       
("Netcare" or "the Group")                                                      
ACQUISITION BY NETCARE`S UK SUBSIDIARY GENERAL HEALTHCARE GROUP OF NINE NUFFIELD
HOSPITALS                                                                       
The transaction forming the subject of this announcement is classified as a     
Category 2 transaction pursuant to paragraph 9.5 of the JSE Limited Listings    
Requirements.                                                                   
1.   INTRODUCTION                                                               
General Healthcare Group Limited ("GHG") the leading independent healthcare     
provider in the United Kingdom ("UK") and Netcare`s 50.1% subsidiary, has agreed
terms with Nuffield Hospitals ("Nuffield") for the purchase of nine hospitals   
with 346 licensed beds ("the Acquisition").  The hospitals will form part of    
GHG`s acute private hospital division, which is a group of 49 acute care private
patient hospitals throughout the UK with over 2,400 beds.  The purchase         
portfolio comprises hospitals in Birmingham, Bury St Edmunds, Gerrards Cross,   
Harrogate, Huddersfield, Lancaster, Lincoln, North London and Nottingham.  This 
will bring the total number of GHG`s UK-based private hospitals to 58.          
2.   RATIONALE                                                                  
This investment will provide GHG access to new communities and new parts of the 
country which enable GHG to offer top quality patient care to a greater         
proportion of the population.  The Acquisition reflects GHG`s commitment to     
broadening access to high quality private patient care across the country and to
the future of private health care in the UK.                                    
3.   SALIENT TERMS OF THE ACQUISITION                                           
3.1  The purchase consideration                                                 
The total purchase consideration in respect of the Acquisition is GBP140        
million, excluding transaction costs, and will be settled in cash.  The         
Acquisition will be funded by GHG through the utilisation of internal cash      
resources and loan facilities, without recourse to Netcare South Africa.        
3.2  Conditions precedent                                                       
The Acquisition is not subject to any material conditions.                      
3.3  Effective date                                                             
GHG and Nuffield are working towards transfer of ownership on 1 February 2008,  
although this date is subject to change to ensure that the change of control can
be effected smoothly and with minimal disruption.                               
3.4  Warranties and indemnities                                                 
The Acquisition agreement contains warranties and indemnities which are normal  
for a transaction of this nature.                                               
4.   INFORMATION ON NUFFIELD                                                    
Nuffield was established in 1957; it is a registered charity and the            
largest not-for-profit healthcare provider in the UK. In order to focus         
on new opportunities to provide a broader range of health services, Nuffield    
offered nine of its hospitals for sale.                                         
5.   FINANCIAL EFFECTS                                                          
The financial effects of the Acquisition on the financial results of Netcare for
the year ended 30 September 2007 in respect of earnings and headline earnings   
per share are not significant (being less than 3% in accordance with the        
definition of the Listings Requirements of the JSE Limited) and have no         
significant effect on net asset value and net tangible asset value per share.   
Total assets of approximately GBP140 million will be acquired under the         
Acquisition and related transaction costs are expected to amount to GBP10       
million. The EBITDA currently generated by these assets is in the region of     
GBP11 million.                                                                  
Johannesburg                                                                    
14 December 2007                                                                
Sponsor                                                                         
Merrill Lynch South Africa (Pty) Limited                                        
Date: 14/12/2007 11:00:03 Supplied by www.sharenet.co.za                     
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