Deals
Life Healthcare to Fund Alliance Deal With $756 Million Offer
- Rights issue to cut net debt to ‘appropriate’ level of gearing
- S. African hospital company sees restoration of credit rating
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Life Healthcare Group Holdings Ltd. plans to raise as much as 10.7 billion rand ($756 million) through a rights issue as the the South African company seeks to reduce debt after it expanded into the U.K. market.
The fully underwritten offer will cut Life Healthcare’s debt to “the appropriate level of gearing for the company to restore its investment grade credit rating,” the Johannesburg-based owner of private hospitals said in a statement on Tuesday. The funds will also enable the company to pursue a capital investment program and pay dividends, it said.