DURBAN – Private hospital group Life Healthcare said yesterday that the disposal of its Max Healthcare in India had led to a hedging loss of R406 million in the year to end September.
The group made a profit of R1.5 billion on the disposal of Max Healthcare, but the windfall was reduced by the impact of the mark-to-market loss on the foreign exchange option contracts taken out to protect the proceeds.
“These option contracts resulted in a loss of R406m before tax of R114m,” the group said.
The group said in trading guidance that the disposal was concluded during the second half of the financial year and funds were received in June.
In January, Life Healthcare said that it had entered into an agreement with Radiant Life Care to dispose of its 49.7 percent stake in Max Healthcare for 80 rupees a share (R16.45 a share), equalling R3.8bn at hedged exchange rates before costs and taxes.