RH Bophelo grows its portfolio

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RH Bophelo grows its portfolio

Published Date: 2019-10-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

RH Bophelo grows its portfolio

The healthcare investment company has made 12 acquisitions as it makes its presence felt in the healthcare sector.

RH Bophelo has been busy since it listed on the JSE in July 2017 as a special purpose acquisition company (SPAC). Over the past two years, the healthcare investment company has made 12 acquisitions, including eight hospitals, a nursing college, two insurance businesses and one emerging management services operation.

The company primarily focuses on investing in the healthcare sector - including hospitals and complementary pharmaceutical, retail, information technology, education, and financial services businesses.

Earlier this year, it bought the Netcare Rand and Bell Street hospitals after Netcare was forced to sell them to meet competition requirements following last year's accession of Akeso Clinics. It also bought a 51% stake in the Medicare Private Hospital in Rustenburg. At the end of April, it acquired 60% of health insurance company Wesmart Financial Services, through which it will provide medical aid. And it has just bought the remaining 40% it doesn't own in Africa Healthcare for R60 million and a 25% stake in niche insurer Generic Insurance Company.

In the six months to end-August, it spent a total of R312 million on investments, 82% up from the prior comparable period. Its net asset value increased by 8% to R584 million but its net asset value per share was more static at R10.86 after it issued 2.5 million new shares as part payment for the Medicare acquisition.

Revenue fell 3% to R44.3 million for the period and operating profit declined 5.5% to R31.2 million. Basic and headline earnings per share came in 7% lower at 60.53c and it hasn't declared an interim dividend.

At the end of August, it had access to R44 million, net of R220 million which has been committed to its existing investments. It said it had progressed on new investment opportunities of over R1.5 billion, including hospitals and healthcare access products, and was considering funding options in order to raise the capital needed to grow its footprint.

RH Bophelo's shares didn't trade on Friday or yesterday, closing unchanged at R11.





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