ANNUAL GENERAL MEETINGS
Why Life Healthcare shareholders shunned share offer
Shareholders of Life Healthcare demonstrated their concern about the board’s disappointing acquisition strategy at Wednesday’s annual general meeting (AGM) when they successfully blocked the resolution required to issue shares for cash. Just more than 49% of the shareholders voted against the ordinary resolution, which, unusually, required at least 75% votes in favour. This means the company will not be able to issue shares for cash until the next AGM, unless it calls an extraordinary general meeting to deal with the matter. One analyst said the move by shareholders would restrict the company’s ability to raise capital to fund acquisitive growth. He said that this reflected the disappointing profit contribution generated by a number of major acquisitions. The company’s push into foreign jurisdictions has been described as necessary in light of the tougher approach by the local competition authorities to consolidation in the South African healthcare market. But like a growing number ...
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