"This acquisition forms part of the original transaction undertaken by Myriad Medical Holdings Limited and sees Litha Healthcare Group now holding 100% of Litha Healthcare Holdings", says Martin Kahanovitz, CFO, Litha Healthcare Group. The transaction is expected to be earnings enhancing for the Litha Healthcare Group.
Kahanovitz explains, "Although we have exercised this option a little earlier than originally anticipated, our main motivation was to really 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. We believe that this will not only benefit our executive team but also our shareholders and market analysts."
The transaction will be structured with 40% of the option price being 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 which Litha Healthcare Group's shares traded on the JSE over the 10 trading days immediately prior to date of the last signature of the addendum to the original agreement, or 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" says 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 adds, "In the next year we look forward to continuing our pace of growth in the local market, as well as investigating expansion opportunities into other markets."
