JOHANNESBURG (Reuters) - South Africa’s Netcare (NTCJ.J) said Thursday it would buy the rest of the shares it does not already own in Britain’s BMI Healthcare from private equity firm Apax and other investors in an all-share deal worth more than $125 million.
The announcement sent shares in Netcare, South Africa’s second largest private hospital firm, up by more than 4 percent to 23.94 rand (1.32 pounds),in a broadly flat market.
Netcare already owned 54 percent of BMI, after the South African firm joined Apax and others to buy BMI’s holding company General Healthcare Group in 2006. Apax held 32 percent, while the balance of shares was held by other investors.
In the all-share deal, Apax would have the right to subscribe for 54 million shares in Netcare in the next five years, Netcare said in a statement.
Apax would receive shares at 26.50 rand per share or a 25 percent premium to Netcare’s share price around its full-year results announcement in November, giving the deal a value of at least 1.4 billion rand ($103.52 million).
Other consortium partners would receive 13 million Netcare shares, worth at least 344 million rand ($25.44 million).
Netcare veteran Karen Prins would take over as chief executive of BMI Healthcare, Britain’s largest private healthcare group, on Oct. 1, Netcare said.
“After a relatively challenging operating period, we believe this is a good outcome and gives the incoming CEO the necessary flexibility to lead the business,” Netcare said.
Reporting by TJ Strydom; Editing by Tiisetso Motsoeneng and Edmund Blair