MERGERS AND ACQUISITIONS
Healthcare services provider AfroCentric goes on the hunt
AfroCentric Group, the healthcare services specialist with a core investment in health-risk management services provider Medscheme, remains on the lookout for local and international opportunities.
In commentary with its half-year results to end-December, AfroCentric CEO Antoine van Buuren said the group’s financial position remained sound, with strong cash generation.
Cash generated by operations came in at R175.5m, with cash on hand of R282m at the end of the interim period.
Van Buuren said Afrocentric had adequate headroom to accommodate expansion opportunities. "At corporate and operational level, management is assessing and implementing plans for real growth and pursuing selective local and international opportunities to complement the existing product and service offering."
AfroCentric is focused on opportunities that will create a platform that offered a value chain of healthcare services to optimise the purchasing power of every healthcare rand through models of integration, mergers, partnerships and economic incentives.
"Several such proposals are already in place, several are in the pipeline and discussions on these initiatives are in progress, both for the public and private healthcare sectors," it said.
Afrocentric has enjoyed a busy time of late, having consolidated about 5,600 community medical scheme members into the Bonitas medical scheme; secured the Hosmed administration contract (24,000 members) for Medscheme; and won a contract for providing administration services for a significant number of members of the South African Local Government Association.
It has acquired Wellness Odyssey, a wellness specialist, bought an 80% stake in Scriptpharm Risk Management, a chronic script claims specialist, and a 51% interest in healthcare insurer Essential Group.