▪ Regulatory and other approvals typical for a transaction of this nature
Indicative Timeline
▪ Life Healthcare Shareholder Meeting early December 2023
▪ Regulatory approvals expected to complete during Q1 CY2024
1 GBPZAR exchange rate of 23.423
Investor Presentation 6 October 2023
4
STRATEGIC RATIONALE
▪ Significant premium realised to the implied value of AMG based on sum-of-the parts
Significant Value Unlock for
▪ Proposed Equity Value for AMG represents 47.8% of Group market capitalisation (pre-February
cautionary announcement)
Life Healthcare Shareholders
▪ Intended return of an estimated c. ZAR 8.4 billion to shareholders via special dividend and/or
share buyback(s)
Value in AMG Realised
▪ De-risksthe delivery of AMG's business plan given large portion of value sitting in the outer
years
Upfront Whilst Maintaining
LMI Optionality
▪
100% of LMI to remain with Life Healthcare
▪ Proposed Transaction will result in a material reduction in the Group's gearing
Group Financial Position
▪ Improved return and cash conversion metrics for both the Group and remaining businesses
Materially Enhanced
▪ Group will have a resilient, flexible balance sheet with strong cash generation ability
Future Growth Enabled
▪ Post implementation, Life Healthcare will be positioned as a leading, diversified, integrated
healthcare services provider in southern Africa with the optionality to extract value from LMI
Through Refinement of
Management's Existing
▪
Expanded headroom to accelerate identified growth initiatives, including the Group's integrated
Strategy and LMI
care strategy in southern Africa, and support growth optionality in LMI
Investor Presentation 6 October 2023
5
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Life Healthcare Group Holdings Limited published this content on 06 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 October 2023 08:07:03 UTC.
Life Healthcare Group Holdings Limited specializes in health facilities' operation. Net sales break down by activity as follows:
- intensive care and ancillary care services (65.3%): At the end of September 2021, there were 99 facilities located in South Africa and Botswana, broken down between acute hospitals (49), dialysis centres (29; 440 stations), mental health facilities (9), rehabilitation centres (7) and oncology facilities (5);
- diagnostic imaging services (27.8%; Alliance Medical): magnetic resonance imaging (MRI), tomographic imaging, molecular imaging and computed tomography services provided in Western Europe, namely in the United Kingdom, Italy, Ireland and Spain;
- long-term medical care and primary health care services (5.4%): services provided through 10 public health centers and 359 occupational health and emplyee wellness clinics;
- other (1.5%).
Net sales are distributed geographically as follows: South Africa (70.8%), the United Kingdom (14.7%), Italy (7.9%), Ireland (2.8%) and other (3.8%).