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Johannesburg - Hospital group Life Healthcare will list on the JSE [JSE:JSE] before the end of this year in an effort to unlock value for its main shareholders.
Empowerment companies Mvelaphanda Group and Brimstone Investment Corporation, each owning 22% of Life Healthcare's shares, said a listing would be their "preferred route" to unlock value.
The groups previously stated they were considering either releasing their shares to shareholders or selling their respective stakes.
The balance of the hospital chain's shares (56%) is held by management and other institutions.
Life Healthcare has a gross value of R10.2bn, according to Mvela's interim financial results to December. Life Healthcare's revenue for the year ended September 2009 stood at R7.9bn.
Life Healthcare currently owns and operates 55 acute care facilities with over 7 600 beds. In addition, it also owns Life Esidimeni, the largest public private partnership in South Africa with 14 facilities and over 5 000 beds.
Mvela Group chief executive Yolanda Cuba said her company was still considering unbundling its Life Healthcare stake to its own shareholders.
"Many of them came into Mvela for our Life Healthcare shares and those in Absa Group," said Cuba.
Mvela said last year it would divest from its unlisted assets first, and Cuba made a commitment to stay on as chief executive until at least 70% of the group's assets had been realised.
The Life Healthcare stake and services company Mvelaserve will make up that percentage.
Cuba said after the listing of Life Healthcare, Mvela's attention will turn to unlocking value out of Mvelaserve.
"There are always ongoing negotiations and things to consider," was all Cuba would say.
The Absa [JSE:ASA] stake is Mvela Group's third-largest after Life healthcare and Mvelaserve. That, too, is up for a possible unbundling to Mvela Group's shareholders.
The exercise to unlock value is Mvela's response to changes in the black economic empowerment arena, where it is no longer possible to build a significant business through buying minority stakes in existing businesses.
Cuba has said the value unlocking exercise would see the end of the company she joined seven years ago.
- Fin24.com
