Life Healthcare lists on JSE

Johannesburg - Private hospital operator Life Healthcare Group [JSE:LHC] successfully listed in the Health Care Providers sector on the JSE Main Board on Thursday morning, with shares placed at R13.50 per share and a market capitalisation of more than R14bn.

The listing was in conjunction with an offer of shares by the company's existing shareholders, comprising 37.35% of the total issued share capital, to institutions in South Africa, selected institutional investors in other jurisdictions and Life Healthcare employees, management and doctors in South Africa.

The company placed about R5.25bn and approximately 40% was subscribed by the foreign investors which is a major vote of confidence in the company, the healthcare sector and in South Africa by the international investment community.

Speaking at the JSE to celebrate the listing, Michael Flemming managing director of Life Healthcare, said the company has a clear and ambitious strategy to take the company onto its next growth phase from which all shareholders can benefit.

"I am particularly pleased that all our permanent employees have been able to realise their investment in the company and therefore share in the company's success of the last five years," he added.

Eligible members of Life Healthcare's Employee Trust stand to benefit to a total value of R500m from the disposal of their interests in the company.

The Employee Trust was established for all permanent staff and share allocations are based on length of service and not on seniority ensuring fair and equitable reward for the number of years served.

Of the approximate 12 700 members of the staff who stand to benefit, 65% are historically disadvantaged individuals excluding white women (94% including white women).

"The JSE is pleased to welcome back Life Healthcare to its main board and the healthcare sector.

"This is a sizeable company with large scale operations and one of the largest IPOs to list on the JSE.

"Life Healthcare has offered investors another way to gain exposure to the private healthcare industry," said JSE CEO Russell Loubser.

 - I-Net Bridge