ZAR9bn Rights Offer in Life Healthcare Group Holdings Limited
On 13th April, Life Healthcare Group Holdings Limited (“Life Healthcare”) successfully closed its ZAR9bn rights offer, to refinance a portion of the initial bridge facility used to fund the offer consideration for the acquisition of Alliance Medical Group Limited (“Alliance Medical”), announced on 16 November 2016, where Life Healthcare was advised by Barclays.
Barclays Africa acted as Joint Bookrunner for the rights offer and Joint Underwriter for c.ZAR7.1bn of the rights offer quantum.
Life Healthcare is a leading private hospital operator in South Africa with market capitalisation of c.R38bn. Its vision is to be a market leading, international, diversified healthcare provider offering high quality, cost effective services in its chosen markets. Alliance Medical is one of Western Europe’s leading providers of complex molecular and diagnostic imaging services with strong market positions in the UK, Italy and Ireland as well as a platform for expansion more broadly with existing participation in eight European markets.
The rights offer was over subscribed demonstrating the clear investment case for Life Healthcare and the Alliance Medical acquisition.
This transaction took place against a back drop of political and economic uncertainty, and market volatility, requiring a composite understanding of equity capital markets and the investor base of Life Healthcare. The successful closing of this deal therefore highlights the strength of the Barclays Africa franchise and its ability to utilize its balance sheet to support clients’ equity raising strategies. The offering represents the third largest South African rights issue since 2015.
According to Dealogic, Barclays Africa is ranked third in South African rights issues since 2014 showcasing our strong capital markets ability in the region. This transaction demonstrates the greater Barclays Group’s ability to leverage expertise across the group, the ability to execute cross-border M&A in the wider EMEA region and reinforces the conviction our clients have around our capabilities in successfully executing complex multi-product transactions
Through our broader engagement with Life Healthcare we also acted as Financial Advisor, Debt Provider, Equity Advisor and Risk Manager.