RH Bophelo: fitting acquisitions and healthy prospects
Black-owned health-care investment company could be an attractive stock to investors
RH Bophelo, a black-owned health-care investment company, could be an attractive stock to investors, considering the quality of acquisitions it has made in the past six months. It has acquired a 76% stake in independently owned private hospital chain operator Vryburg Private Hospital Holding Company (VPH) for R24.3m in cash. It also bought a 60% shareholding in hospital management company Africa Healthcare for R50m in cash. The acquisition of VPH, a 44-bed hospital, will allow the company to improve its quality, capacity and service offering. This and the AHC acquisition will lead to additional cost savings and earnings growth. AHC has grown quickly in five years by managing three hospitals, including two of its own. It owns and operates the St Helena Private Hospital in Welkom, Free State; the Fountain Private Hospital, in Carletonville, Gauteng; and manages a private hospital in Nelspruit, as well as a managed care facility in Welkom. These acquisitions were meant to turn the comp...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.