LIFE HEALTHCARE GROUP HOLDINGS LIMITED 05 October 2023
The transaction will provide shareholders of Life Healthcare with the opportunity to unlock material value in AMG by realising a significant premium to the estimated value of AMG reflected in Life Healthcare's share price prior to the transaction, as well as the ability to return capital to shareholders via a special dividend and/or share buyback programme.
Life Molecular Imaging (LMI) is not included in the transaction and will remain a key part of Life Healthcare's growth strategy. The Group has secured ongoing support from AMG to realise its imaging strategy in southern Africa as well as ongoing manufacturing and distribution of LMI's products internationally.
Commenting on the transaction, Life Healthcare's Board Chairman, Dr Victor Litlhakanyane said, "AMG is a valued part of the overall Group. In considering the unsolicited offers, the Board debated extensively before concluding that the transaction is in the best interest of shareholders to extract immediate value by de-risking the longer-term delivery of the AMG business plan."
Peter Moore, Partner at iCON, said: "The Diagnostic Imaging, Molecular Imaging and Radiopharmacy sector has been a core focus area for iCON for several years. AMG is a leader in each of its principal markets and is a provider of essential diagnostic services across multiple diagnostic modalities. Through AMG, we will continue to invest in the diagnostic infrastructure required to address the growing need for access to high-quality diagnostic imaging, all the while ensuring AMG continues to act as a leading independent provider of radiopharmaceutical products. We are excited to have the opportunity to support AMG's management teams in this next phase of its evolution."
"AMG is a great business with an outstanding team. It remains well-placed to continue supporting Europe's evolving healthcare needs under the new ownership structure and we wish the team well. Post the transaction, Life Healthcare remains committed to a strategy of expanding across thecontinuum of care with leadership remaining focused on enhancing the Group's position as a leading, diversified, and integrated healthcare services provider through our integrated care model in southern Africa and international revenue growth potential through LMI's radiopharmaceutical portfolio. This ambition will actualise through clear capital allocation priorities, resilient and sustainable financial profile, and strong cash generation," added Life Healthcare's Group Chief Executive, Peter Wharton-Hood.
The transaction is subject to terms and conditions aligned to corporate actions of this nature and Life Healthcare anticipates that the transaction will close during the first quarter of 2024.
About Life Healthcare Group
Life Healthcare is a global people-centred, diversified healthcare organisation listed on the Johannesburg Stock Exchange. Life Healthcare has over 38 years' experience in the South African private healthcare sector, and currently operates 64 healthcare facilities in southern Africa. Services include acute hospital care, acute physical rehabilitation, acute mental healthcare, renal dialysis, oncology, imaging and occupational health and wellness services. The Group also owns Life Molecular Imaging, an R&D molecular imaging business of innovative PET tracers to reduce the burden of diseases through improved early detection. Learn more at https://www.lifehealthcare.co.za/ and https://life-mi.com/
About iCON
iCON is the exclusive investment advisor to infrastructure funds with cumulative commitments in excess of $8bn. iCON VI, iCON's latest flagship fund, closed fundraising in June 2022 with $3.6bn of capital committed from over 50 investors. Investors in iCON's funds comprise globally recognized corporate and public pension funds, asset managers, insurance companies and sovereign wealth funds. iCON is a long-term investor with an extensive track record of supporting market-leading businesses to enable growth, operational excellence and sustainability. iCON advised funds invest across a range of infrastructure sectors including healthcare, transport, telecommunications, water, energy generation, distribution and storage. Learn more at www.iconinfrastructure.com
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Life Healthcare Group Holdings Limited published this content on 05 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 October 2023 14:55:22 UTC.
