LIFE Healthcare completed the disposal of its Polish business Scanmed S.A for a cash consideration of R1.29 billion to Abris Capital Partners, a central European private equity fund manager.
The diversified healthcare group has decided to focus on its strategy of growing its share of non-acute revenue and earnings as the reason for the disposal of the business.
Life Healthcare acquired Scanmed in 2014 and the Polish hospital business operates in 42 locations across that country and offers comprehensive medical services in acute facilities, cardiac centres, monoclinics and outpatient facilities.
Life Healthcare said the disposal consideration will be settled in cash and Life Healthcare will receive net proceeds of approximately PLN185 million after settling debt in Scanmed and transaction costs. “The expected rand value of the transaction proceeds is R692m, using a spot PLN:ZAR exchange rate of 3.74 as at March 31, 2021,” the group said.
The disposal of Scanmed comes after the transaction met all the regulatory requirements and transaction was closed at the end of last month (March).
Life Healthcare reported a 45.1 percent decline in earnings for the year to end September results, partly hurt by an impairment of R793m in Scanmed.
Life Healthcare still has its UK subsidiary Alliance Medical Group in its international operations after exiting Scanmed.