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Life Healthcare Group Successfully Nears Conclusion of Alliance Medical Group Disposal

  • Successful Milestone: Life Healthcare Group fulfills all Conditions Precedent, nearing the finalization of Alliance Medical Group's disposal.
  • Anticipated Conclusion: The transaction is expected to conclude at the end of January 2024, marking a strategic move for Life Healthcare.
  • Net Proceeds Plan: Majority of net proceeds to be returned to shareholders; remaining funds allocated for debt repayment and growth projects.
Life Healthcare group limited

South African healthcare giant, Life Healthcare Group Holdings Limited, is on track to finalize the disposal of its interests in Alliance Medical Group, a move that has been closely watched by shareholders and noteholders. The company recently announced the fulfillment of all Conditions Precedent, setting the stage for the anticipated conclusion of the transaction at the end of January 2024.


Fulfillment of Conditions Precedent Signals Milestone for Life Healthcare

In a series of announcements released on SENS on 5 October 2023, 9 November 2023, 29 November 2023, and 8 December 2023, Life Healthcare Group informed stakeholders about the proposed disposal of its interests in Alliance Medical Group to iCON Infrastructure. The Conditions Precedent, as defined in the Sale and Purchase Agreement and detailed in the Circular distributed to shareholders on 9 November 2023, have now been successfully satisfied.


Transaction Expected to Conclude by End of January 2024

With all the required conditions met, Life Healthcare is gearing up for the conclusive phase of the transaction. Shareholders and noteholders can expect the disposal of Alliance Medical Group to be finalized at the end of January 2024, marking a significant step in the strategic evolution of the company.


Net Proceeds Allocation Plan Unveiled by Life Healthcare

As part of its post-transaction strategy, Life Healthcare intends to return the majority of the net proceeds to shareholders within the next few months. The company plans to allocate funds after addressing key financial commitments. This includes the repayment of offshore debt, settling transaction-related expenses, and retaining a portion of the net proceeds for specific growth projects.

AllocationPurpose
Majority of net proceedsReturn to Shareholders
Remaining fundsRepayment of offshore debt, settlement of expenses, and retention for specific growth projects

Further communication regarding the detailed allocation and distribution of the net proceeds is expected to be provided by Life Healthcare in due course.

Conclusion

The successful fulfillment of Conditions Precedent brings Life Healthcare Group Holdings Limited closer to completing the disposal of Alliance Medical Group. With the anticipated conclusion in January 2024, shareholders and noteholders can expect further updates on the distribution of net proceeds and the company’s strategic plans for growth. As Life Healthcare navigates this pivotal moment, the support from Rand Merchant Bank reaffirms the confidence in the company’s financial strategy and future prospects.

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