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2023-12-09 8:00 AM

Life Healthcare’s Strategic Triumph: Alliance Medical Group Disposal Gains Investor Nod, Paving the Way for Q1 Success

  • Shareholder Approval: Overwhelming support for Life Healthcare's resolution on the disposal of Alliance Medical Group, securing 100% approval.
  • Conditions Precedent Met: Crucial milestones achieved, including regulatory clearances and shareholder approval, advancing the transaction as planned.
  • Remaining Hurdle: The only outstanding condition is the Foreign Investment Clearance in Austria, with the transaction expected in Q1 2024.
By Lethabo Ntsoane

Life Healthcare Group Holdings Limited has achieved a significant milestone in its strategic move to divest its interests in Alliance Medical Group. In an announcement dated December 8, 2023, the company shared the outcomes of a General Meeting held on December 8, 2023, outlining key developments and progress in the proposed transaction.

General Meeting Triumph

Shareholders’ approval was sought for the resolution necessary to authorize and execute the transaction. The ordinary resolution, crucial for advancing the disposal, received overwhelming support. The voting results, detailed in the table below, reflect the robust backing from shareholders:

ResolutionVotes Cast (Percentage)Number of Shares VotedShares Voted (Percentage of Total Issued Shares)Shares Abstained (Percentage of Total Issued Shares)
Ordinary Resolution – Approval of the Transaction100.00% for / 0.00% against1,201,202,75881.86%0.02%

The total number of shares in issue as of the General Meeting record date stood at 1,467,349,162 shares.

Conditions Precedent Fulfilled

Life Healthcare also confirmed that several Conditions Precedent, as defined in the Sale and Purchase Agreement and Circular, have been satisfied. Notable milestones include:

  • Unconditional clearance for three out of four regulatory conditions precedent: merger control clearance in Ireland, Foreign Investment Clearance in Germany, and Foreign Investment Clearance in Italy.
  • Fulfillment of Life Healthcare lender-related conditions precedent, including the DMTN Guarantee Release Condition and guarantee release conditions for term loan and general banking facilities in South Africa.
  • Approval of the ordinary resolution in terms of section 9 of the JSE Listings Requirements by shareholders at the General Meeting.

Remaining Hurdle: Foreign Investment Clearance in Austria

While significant progress has been made, the announcement highlighted that the only outstanding regulatory condition precedent is the Foreign Investment Clearance in Austria. Despite this, the company remains on track, and the Transaction is expected to conclude in the first quarter of 2024.

Forward-Looking Statements

Life Healthcare Group commits to keeping shareholders and noteholders informed of further developments. A subsequent announcement will be released on SENS, providing details on the fulfillment of the remaining condition precedent and the subsequent implementation of the Transaction.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo