Advanced Health’s share price shot up 27.6% to 97 cents yesterday morning as the price narrowed the gap between that at which the group is being taken over and yesterday’s “Clean-Out Dividend” announcement.
At 97c, the share was trading at levels it had last seen as long as four years ago. And the price had already escalated dramatically by nearly 90% from last month, when the price rocketed immediately after controlling shareholders of the day hospital group, led by chairperson Alfred Grillenberger, made an offer to buy out the minority shareholders.
As reasons for the buyout offer, the controlling shareholders said that after almost a decade on the JSE, the company had not been able to reach a goal of accessing institutional capital, especially considering the high costs of listing.
Eenhede Konsultante, which owns about 58% of Advanced Health, had made an offer of 80c a share, which had represented a 100% premium to its share price at the opening of trade, on the day of the announcement of the takeover offer.
The offer was to acquire about 29% of Advanced Health’s shares except those shares that were held by three other shareholders.
Advanced Health said yesterday that following further shareholder engagement about the minority buyout, it was decided to declare and pay out a “Clean-Out Dividend” of 20c per Advanced Health share to all shareholders that held shares on the record date for the implementation of the scheme.
In March, Advanced Health’s shareholders approved the R522 million sale of its majority stake in the Australian subsidiary Presmed.
Day hospitals provide same-day short-procedure surgical services and diagnostic procedures, with the aim of more cost-effective access to health care.
Implementation of the scheme will result in Advanced Health’s eventual delisting from the JSE.
The Takeover Regulation Panel has approved the “Clean-Out Dividend” but shareholder approval by way of an ordinary resolution will be required.
In the six months to December 31, Advanced Health’s taxed profit decreased 50% to R0.4m versus R0.8m at the same time in 2022. Revenue from continued operations rose 22% to R126.6m. The headline loss per share improved 86% to 0.06c.
BUSINESS REPORT