CAPE TOWN - Brimstone Investment Corporation, the black controlled and managed investment company, said Monday it had acquired a further 55 percent stake in Obsidian Health, increasing its total shareholding to 80 percent.
This stake was acquired for R35.7million cash. All conditions precedent have been met and the transaction has been concluded.
Obsidian Health is a leading supplier of innovative healthcare solutions to the private and public healthcare sectors within Sub-Saharan Africa.
The product portfolio includes capital equipment and medical devices in cardiology, cardiovascular, tatre, ICU and high care, orthopaedics as well as Point of Care (POC) diagnostic testing.
Obsidian Health has long term partnerships with a number of multinational healthcare companies within Sub-Saharan Africa. It is the exclusive distributor of trusted specialist healthcare brands such as Ansell, Abbott Point of Care, Erbe, Serres, Integra Life Sciences, and AE Medical.
Obsidian Health is the remaining portion of the medical division of The Scientific Group, in which Brimstone was an investor for close to 20 years.
Brimstone has a long-term partnership approach to its investments - this model has delivered real shareholder value while advancing effective transformation and inclusive empowerment.
Brimstone CEO Mustaq Brey said: “We have walked a long road with a strong management team in Obsidian Health. This is another example of how we have increased our stake over time to a very meaningful position in a good business.
The acquisition was in line with Brimstone’s strategy of having control or significant influence and increasing its portfolio of unlisted assets.
“”Having been invested in this business for a very long time, we have a deep understanding of the dynamics and metrics of this business, and will continue to add value and benefit Obsidian Health with our strong empowerment credentials,” said Brey.
Obsidian Health CEO Shawn Landsman said: “Brimstone has played a significant role in Obsidian’s growth over the years. Now as our majority shareholder we look forward to further enhancing that relationship with our ability in attracting global multinational healthcare partners. Obsidian Health is committed to providing cost effective and innovative healthcare solutions to the local market in our efforts to provide healthcare access to all.”
Brimstone’s share price was unchanged at R7.25 early Monday morning.