Netcare agrees to dispose of subsidiaries
DURBAN – JSE- listed private healthcare group Netcare has entered into agreements with RH Bophelo and RH Managers to dispose of its two subsidiaries, Netcare Rand Hospital and Netcare Bell Street Hospital, for R124million.
Netcare said yesterday that the two parties entered the agreements last week. The tribunal approved the acquisition of Akeso by Netcare in March last year, subject to certain conditions, including the disposal of Netcare’s two subsidiaries.
As a result the group said the assets of Rand and Bell were classified as held-for-sale in Netcare’s 2018 audited financial statements.
“In accordance with the agreements and accounting standards, Netcare will only recognise the capital profit arising on the disposal of Rand and Bell in its accounts upon formal closing of the transaction following satisfaction of the conditions precedent,” Netcare said.
The Akeso Clinics, a group of 12 dedicated mental healthcare facilities, was acquired for R1.3billion, funded through existing resources.