RMB partners Life Healthcare to sell its AMG interest

24 OCTOBER 2023

MEDIA RELEASE

Life Healthcare partners with RMB to sell its interest in Alliance Medical Group

Life Healthcare (LHC) is selling 100% of its interest in UK-based diagnostics business Alliance Medical Group (AMG) to iCON Infrastructure LLP, in a deal worth ZAR 21 billion (GBP 910 million). RMB fulfilled several key roles on the transaction, including South African Corporate Advisor, Sponsor and Corporate Broker to LHC. 

Post settlement of offshore debt, LHC plans to return ZAR 8.4 billion to shareholders by way of a special dividend and/or share buy-back and will retain ZAR 2.4 billion to fuel its growth strategy. 

“AMG is a great business with an outstanding team. It remains well-placed to continue supporting Europe’s evolving healthcare needs under the new ownership structure and we wish the team well. Post the transaction, Life Healthcare remains committed to a strategy of expanding across the continuum of care with leadership remaining focused on enhancing the Group’s position as a leading, diversified, and integrated healthcare services provider through our integrated care model in southern Africa and international revenue growth potential through LMI’s radiopharmaceutical portfolio. This ambition will actualise through clear capital allocation priorities, resilient and sustainable financial profile, and strong cash generation,” says Peter Wharton-Hood, CEO at LHC. 

Following completion of the transaction, LHC will be positioned as a leading, diversified, and integrated healthcare services provider in southern Africa, with clear capital allocation priorities, a resilient and sustainable financial profile, and a strong cash generation ability. LHC will have significant growth potential in the region through its integrated care model and international growth potential through LMI’s radiopharmaceutical portfolio. 

“As a trusted corporate partner, RMB played an important role on the transaction. Aside from acting as Corporate Advisor, Sponsor and Corporate Broker, RMB also advised LHC on its various debt facilities and domestic medium-term note programme, as well as South African Reserve Bank considerations through our FirstRand Authorised Dealer, and shareholder engagement together with RMB Morgan Stanley. This transaction represents a collaborative effort from a market-leading team who provided a holistic offering to one of our key clients,” says Gareth Armstrong, Corporate Finance Executive at RMB.

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