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Cape Town - Netcare will be outsourcing Medicross retail pharmacies and Netcare hospital front shop operations to Clicks, the firms said in a joint JSE SENS announcement on Wednesday.
"Shareholders are advised that Netcare has entered into a long-term agreement to outsource their 37 retail pharmacies in the Medicross family medical and dental centres ("Medicross") and the 51 hospital retail front shop operations ("front shops") of the Netcare Hospital division to Clicks ("the Transaction")."
In terms of the agreement, Clicks will assume control of all Medicross pharmacies and the front shops of the Netcare Hospital division. The agreement excludes the dispensing of prescriptions in the Netcare Hospital pharmacies which remain within Netcare's hospital operations.
"The rationale for the Transaction is to offer an enhanced retail service offering to both patients and consumers by affiliating the pharmacy and the front shops to an experienced retail provider such as Clicks."
The statement said that specific employees involved in these areas of the business will be transferred to Clicks on terms similar to their current conditions of employment and any other employees indirectly affected will remain employed by Netcare on their current conditions of employment.
The implementation date of the Transaction is expected to be October 1 2016, subject to various conditions precedent and regulatory approvals, including Competition Commission approval.
The Transaction is a non-categorised transaction in terms of the JSE Listings Requirements for Netcare and Clicks and will have no material impact on the earnings and financial positions of either Netcare or Clicks.
