JOHANNESBURG - ASCENDIS Health said yesterday it had concluded a deal to sell its non-core asset Respiratory Care Africa (RCA) for R450 million as it recapitalises the debt-troubled group.
It said it had alerted its shareholders on May 12 to the potential disposal of RCA. RCA is a supplier of respiratory, monitoring, radiology and other medical equipment and consumables used in the treatment of patients at hospitals (with a focus in high care, ICU, operating theatre and maternity wards) and in the home.
It also provides technical support and services in relation to the medical equipment it supplies.
A sale-of-shares agreement had been concluded between Surgical Innovations, a wholly owned subsidiary of Ascendis Health, with RCA as a subsidiary, and K2021519417, indirectly owned by the Ata Fund III Partnership, an en commandite partnership managed by Ata. Subject to meeting regulatory conditions, the deal was expected to be concluded in the third quarter of the year.
The board of directors had previously communicated its commitment to reduce the group’s unsustainable debt levels, it said.
Earlier this month, Ascendis Health reached an agreement with its lenders for the restructuring and recapitalisation agreement with its creditors Blantyre Capital and L1 Health for the settlement of its outstanding debt of €447 million (R7.58 billion).
BUSINESS REPORT