Litha Healthcare acquires balance of shares

Dec 06 2010 14:25
I-Net Bridge
Johannesburg - Litha Healthcare Group [JSE:LHG], a JSE-listed company with operations in the pharmaceutical, medical devices and biotechnology sectors of the healthcare industry, on Monday announced the group's acquisition of the remaining 49% of shares not held in Litha Healthcare Holdings.

"This acquisition forms part of the original transaction undertaken by Myriad Medical Holdings [JSE:MYD] and sees Litha Healthcare Group now holding 100% of Litha Healthcare Holdings," said chief financial officer Martin Kahanovitz.

The transaction is expected enhance earnings for the Litha Healthcare Group.

"Although we have exercised this option a little earlier than originally anticipated, our main motivation was to simplify the group structure, allowing us to create more focus on the group's operations as well as simplify the manner in which the financials are compiled," Kahanovitz said.

The transaction will be structured with 40% of the option price paid in cash and the balance paid by the issuing of Litha Healthcare Group Limited shares.

The shares will be issued at the lower of the volume weighted average price at R2.20 per share.

Blackstar and Visio Capital, constituting 72% of Litha Healthcare Group's shareholders (excluding those shares held by the vendors), have irrevocably undertaken at a general meeting to vote in favour of all resolutions required to approve and implement the revised option.

Litha Healthcare Group Limited was recently awarded eighth place in the Sunday Times/Business Times Top 50 companies under one year category.

"We are tremendously proud of this achievement," said Kahanovitz.

"The last year has seen the group align its offerings into three main business streams, namely pharmaceutical, medical and biotechnology, and we have started streamlining our operations and reducing overhead costs to create a leaner, diversified healthcare group," he said.
litha healthcare group



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