| NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 42 |
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| 42. |
Subsequent events
At 30 June 2014 the Company had entered into discussions with certain parties with a view to expanding the business
of AfroCentric Health Limited. A commencing Cautionary Notice was posted on the Securities Exchange News Service
(“SENS”) on 10 June 2014. Pursuant thereto, the following information is an extract from a section of the Company's
published results announcement on SENS on 30 September 2014 titled "Recent Developments":
| 1. |
Agreement has been reached to acquire the wholesale and courier pharmacy businesses belonging to WAD Holdings
(Proprietary ) Limited (“WAD”), businesses that specialise in the wholesaling, dispensing and delivery of chronic medication
for and on behalf of private and public sector clients and patients. In addition, the transaction will include the purchase
of the Group’s agency enterprise and a strategic minority interest in the generic and OTC complementary medicine
distribution business. The Company has also secured an option to acquire WAD’s two specialised commercial properties.
The purchase price will be satisfied substantially by the issue of AfroCentric shares and a certain amount in cash. |
| 2. |
Agreement has been reached with Sanlam Limited (“Sanlam”), whereby Sanlam will acquire a 28.7% shareholding in
ACT Healthcare Assets (Proprietary) Limited (“AHA”), a wholly owned subsidiary of AfroCentric which owns 94.10% of
AfroCentric Health Limited (“AHL”). The total Sanlam investment amount will be approximately R700 million, (after the
transfer of acquired WAD businesses referred to above), of which about R160 million will be applied to the repayment of
AHA third party borrowings, the balance being applied to the repayment of inter-company loans between AHA and the
Company. As a result of the total Sanlam investment and the repayment of third party debt of approximately R160 million,
AfroCentric shall be substantially debt-free and have additional cash resources of approximately R542 million. The Sanlam
investment is subject to certain suspensive conditions being fulfilled or waived. |
Further information and details of the transactions were released on SENS on 30 September 2014.
The above transactions are both non-adjusting subsequent events. |
| NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 42 |
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