Medical group to be sold in £910m deal

Life Healthcare has entered into an agreement to sell Warwick-based Alliance Medical Group (AMG) to iCON Infrastructure in a deal worth £910m.

Life Healthcare is one of the largest private healthcare providers in southern Africa, primarily serving the private medically insured market and has over 40 years’ experience in the private healthcare sector.

The transaction will provide shareholders of Life Healthcare with the opportunity to unlock material value in AMG by realising a significant premium to the estimated value of AMG reflected in Life Healthcare’s share price prior to the transaction, as well as the ability to return capital to shareholders via a special dividend and/or share buyback programme.

Life Healthcare’s board chairman Dr Victor Litlhakanyane said: “AMG is a valued part of the overall group. In considering the unsolicited offers, the Board debated extensively before concluding that the transaction is in the best interest of shareholders to extract immediate value by de-risking the longer-term delivery of the AMG business plan.”

Peter Moore, partner at iCON, said: “The Diagnostic Imaging, Molecular Imaging and Radiopharmacy sector has been a core focus area for iCON for several years. AMG is a leader in each of its principal markets and is a provider of essential diagnostic services across multiple diagnostic modalities. Through AMG, we will continue to invest in the diagnostic infrastructure required to address the growing need for access to high-quality diagnostic imaging, all the while ensuring AMG continues to act as a leading independent provider of radiopharmaceutical products. We are excited to have the opportunity to support AMG’s management teams in this next phase of its evolution.”

Allen & Overy is advising on the deal.

Matthew Appleton, global head of healthcare transactions at A&O, said: “We are delighted to have supported Life Healthcare on this strategically important transaction, which further demonstrates the strength and expertise of A&O’s healthcare transactions team.”

The deal was led by Appleton and counsel Gareth Irving, alongside senior associate Aoife Mac Dermott and associates Andrew Boyce, Isabelle Graves and Victoria King.

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