NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 39

39. SUBSEQUENT EVENTS

Subsequent to the financial year-end, the following material events occurred, brief details of which are as follows:

LIBERTY MEDICAL FUND HEALTH ADMINISTRATION AND HEALTH RISK MANAGEMENT CONTRACT

Medscheme Holdings (Pty) Ltd has secured the health administration and health risk management contracts for the Liberty Medical Fund (previously Liberty Medical Scheme) effective 1 August 2016. Liberty Medical Fund represents approximately 110 000 lives and has applied for an amalgamation with Bonitas Medical Fund. Should the merger be successful, it will represent a significant milestone in the consolidation process of the South African Medical Scheme market.

At the time of printing the Integrated Annual Report, the approval from the Council for Medical Schemes, in respect of the amalgamation of Bonitas Medical Fund with the LMS Medical Fund (previously known as Liberty Medical Scheme), was not received.

We therefore wish to advise that the long awaited approval from the Council for Medical Schemes in respect of this amalgamation has been received and is effective
1October 2016.

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 39