Johannesburg - Netcare is to restructure its 10-year-old BEE transaction so that it is debt-free, the healthcare group announced on Wednesday. The transaction, involving 160 million preference shares worth R1 billion, was concluded in 2005.
The group will repurchase shares in Netcare held by the two BEE funding vehicles, which will use the funds to settle their outstanding liabilities and make a capital contribution to each of Netcare’s four BEE trusts to enable the trusts to subscribe for ordinary shares directly in Netcare.
Netcare’s BEE transaction will therefore be debt-free and the structure of the transaction will be simplified, thereby reducing management and administrative functions.
Netcare said the increase in the Netcare share price had created this opportunity, which would enhance value for future participants, who would also be able to participate in dividends on new unit allocations.
ANA