To view the PDF file, sign up for a MySharenet subscription.

LHC - Life Healthcare Group Holdings Limited - Proposed acquisition of

Release Date: 11/10/2011 17:00
Code(s): LHC
Wrap Text

LHC - Life Healthcare Group Holdings Limited - Proposed acquisition of 26% of the share capital of Max Healthcare Institute Limited LIFE HEALTHCARE GROUP HOLDINGS LIMITED Incorporated in the Republic of South Africa Registration number: 2003/002733/06 ISIN: ZAE000145892 Share Code: LHC ("Life Healthcare" or "the Company") PROPOSED ACQUISITION OF 26% OF THE SHARE CAPITAL OF MAX HEALTHCARE INSTITUTE LIMITED 1. Introduction Shareholders are advised that the Company has entered into a non binding term sheet with Max Healthcare Institute Limited ("MHC") for the acquisition of 26% of the post-issue share capital of MHC ("the proposed acquisition"). MHC, the leading private hospital provider in the Delhi- NCR region, is a subsidiary of Max India, one of India`s leading multi business corporates. 2. The proposed acquisition 2.1 Rationale The proposed acquisition of 26% of MHC is in line with the Company`s strategy to expand into fast growing emerging markets. Terms of the proposed acquisition The proposed acquisition is subject to the following conditions precedent: - definitive agreements being entered into between the two parties; - a due diligence exercise to be performed by the Company; - obtaining exchange control approval from the South African Reserve Bank and any other regulatory approval that may be required; and - approval by the boards of the Company and MHC. 2.3 The consideration The proposed acquisition price is Rs 516.5 crore (approximately R850 million) which will be settled in cash. Life Healthcare will, subject to the consent of its lenders, provide pro-rata guarantees for its proportionate share of the debts of MHC currently guaranteed by Max India. The proposed acquisition is, at this stage, not deemed to be material enough for the Company to publish a cautionary announcement in terms of the JSE Listings Requirements and further details relating to the proposed acquisition will be released on SENS once available. Illovo 11 October 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 11/10/2011 17:00:01 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.

Share This Story