RH Bophelo takes majority stake in MPH

JSE-listed special purpose acquisition company RH Bophelo has acquired a 51% stake in Medicare Private Hospital (MPH) in Rustenburg, North West Province, South Africa for R149.7 million (US$10.6 million).

Established in 2009, MPH is an acute 110 bed independent private hospital. Originally a 36-bed sub-acute hospital, it is now an established acute facility in the North West Province.

For the six months to August last year, MPH turned a profit of R7.2 million and had a net asset value of R18.3 million.

The majority of the entire issued share capital of MPH is currently owned by John Beaumont and Belinda McGillewie with the remaining 6.6% being held by a special purpose vehicle set up as an equity ownership scheme for the doctors of MPH.

The acquisition will be made in three stages: first by the issue of 2.5 million shares in Rophelo at the 30-day VWAP for R24.6 million; second with R32.4 million in cash; and third Bophelo will acquire the propco for R92.7 million.

Deloitte & Touche is acting as sponsor for Rophelo. Third Way Investment and Birkett Stewart McHendrie are corporate advisors, with Motsoeneng Bill as legal advisors.

Completion is expected in mid-May.