Netcare gives billions back to shareholders
Analysts see this as a sign SA’s second-biggest private hospital group plans no more major acquisitions after its disastrous UK foray
SA’s second-biggest private hospital group, Netcare, is returning billions of rand to investors, a move analysts see as a sign that it is not planning any more major acquisitions after its disastrous UK venture. Announcing annual results for the year to September 30, Netcare said it would pay a special dividend of 40c a share, equivalent to R550m. This is on top of its commitment to pay an interim dividend of 44c per share and a final dividend of 60c per share, equivalent to R1.36bn for the 2018 financial year, along with a post year-end share buyback scheme, which has returned R450m to shareholders. The total windfall due to investors is R2.36bn.
Netcare CEO Richard Friedland said management had reviewed the company’s capital structure and distribution policy after its decision in March to quit the UK and dispose of its interests in the UK’s biggest private hospital chain, General Healthcare Group, which left the company with solely South African operations. “We spent a good...
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