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NTC - Netcare Limited - Sale Of Units And Claims In Ampath Group NETCARE LIMITED (Co. Reg. No. 1996/004282/06) Code: NTC ISIN number: ZAE000011953 ("Netcare") SALE OF UNITS AND CLAIMS IN AMPATH GROUP Pursuant to a decision taken in 2006 to exit its 50% interest in the Ampath Group, Netcare has signed an agreement to sell all its units in and claims against Ampath Holdings Trust to a consortium of pathologists for an amount of R1 026,5 million (1 billion and 26,5 million rand). The transaction is subject to Competition Commission approval and is expected to be completed by the end of February 2009. Ampath provides comprehensive support services to various incorporated pathology laboratory practices which provide pathology related services to healthcare practitioners and their patients. Netcare is disposing of its interest in the Ampath Group because it is considered that the regulatory authorities are not in favour of corporate involvement in pathology services. The effective date of the agreement is 1 November 2008. The consortium of pathologists have raised the financing necessary to complete the deal, with approximately 40% of the financing being guaranteed by Netcare. The proceeds from the disposal will be used by Netcare to retire a portion of its debt. Shareholders are referred to Note 4 to the financial statements of Netcare as at 30 September 2008, as published on 24 November 2008 in the SENS announcement relating to the Audited Group results for the year ended 30 September 2008, which disclosed the following information relating to Netcare`s interest in the Ampath Group:- 30 30 September September For the year ended 2008 2007 Rm Rm
Disposal group and assets held for sale Assets held for sale Assets in disposal group - Ampath Holdings Trust 295 275 Liabilities in disposal groups held for sale Liabilities in disposal group - Ampath Holdings Trust (81) (79) Discontinued operation - Ampath Holdings Trust The Ampath Holdings Trust has been classified as a disposal group held for sale. Our 50% share of the discontinued operation was as follows: Revenue 563 507 Other income 2 Administrative and other (426) (380) expenses Operating profit 139 127 Financial expenses (8) (7) Profit before taxation 131 120 Taxation (26) (11)
Profit for the year 105 109 30 30
September September For the year ended 2008 2007 Rm Rm The assets and liabilities of the disposal group are as follows: Property, plant and equipment 71 54 Goodwill 72 72 Investments and loans 11 5 Inventories 10 8 Trade and other receivables 116 76 Taxation receivable 6 Cash and cash equivalents 15 54 Long-term debt (10) (6) Post-retirement benefit obligation (9) (10) Trade and other payables (56) (57) Taxation payable (4) Short-term debt (2) (6) The cash flows are as follows: Net cash from operating activities (11) 74 Net cash from investing activities (28) (32) Net cash from (3) financing activities The disposal is categorised as a category 2 transaction and this announcement is issued in terms Rule 9.15 of the Listing Requirements of the JSE Limited. The transaction will be earnings neutral for Netcare. 11 December 2008 SANDTON Sponsor: Merrill Lynch South Africa (Proprietary) Limited Attorneys to Netcare: H R Levin - Attorneys, Notaries & Conveyancers Date: 11/12/2008 17:12:19 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
