South Africa’s Advanced Health has entered into a binding share-sale agreement with PresMed BidCo to buy the JSE-listed company’s South stake in PresMed Australia (PMA), its Australian subsidiary.
The deal was agreed after the health company announced a strategic review and confirmed it had received approaches from various parties expressing interest in its shares in PMA.
PresMed BicCo is owned by ICG Asia Pacific Fund IV (a USD 1.1bn managed by LSE-listed Intermediate Capital Group), and a consortium of management and medical shareholders.
The deal equates to a 100% PMA equity valuation of approx. AUD 80.1mn and the sale of 635,274 shares with a transaction value of AUD 45.2mn (USD 30.34mn, ZAR 555mn).
Deal rationale
For the JSE-listed company, remaining a going concern is dependent on procuring funding for its South African operations—either by selling strategic investments or other capital-raising initiatives. Proceeds will be used to restructure the company’s balance sheet and to finance working capital requirements.
Advisers
Monash advisory acted as transaction and financial adviser to the South African company, while Gilbert & Tobin acted as the JSE-listed company’s legal adviser.
About PMA
The company is a private day hospital group that was founded in 1997, and since 2014 has been majority-owned by Advanced Health with the rest of the company being owned by its Australian management team and a consortium of doctors.
The company co-owns ten assets, which include day hospitals and consultation clinics. These are located in Sydney, and its surrounding areas, the Central Coast and Tasmania. Its facilities specialise in the following disciplines; Ophthalmology, ear nose and throat, pain management and oral maxillofacial surgery among others.
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