Competition Commission Recommends Conditional Approval Of Bidco And Afrox

Release Date: 20/04/2004 14:17:02 Code(s): AFX
Competition Commission Recommends Conditional Approval Of BIDCO And Afrox
Healthcare Deal
African Oxygen Limited
(Incorporated in the Republic of South Africa)
(Registration number 1927/000089/06)
Share code: AFX
ISIN: ZAE000030920
("Afrox")
African Oxygen Limited (Afrox) wishes to notify all its shareholders and
interested parties that, on Friday 16 April 2004, the Competition Commission
recommended to the Competition Tribunal that the merger of Business Venture
Investments No 790 (Pty) Ltd (Bidco) and Afrox Healthcare Limited (Ahealth) be
approved subject to certain conditions.
Bidco comprises a BEE consortium and Medi-Clinic Corporation Limited (Medi-
Clinic). The BEE consortium comprises Brimstone Investment Corporation Limited,
Mvelaphanda Strategic Investments (Pty) Ltd (Mvelaphanda), and broad based
empowerment groupings.
The summary of the salient points of the conditions recommended by the
Competition Commission are -
- Disinvestment of Mvelaphanda"s shareholding in Tshwane Private Hospitals
(Pty) Ltd (Tshwane)
- Mvelaphanda must disinvest its 32 percent shareholding in Tshwane.
- Appointment of a non-executive director by Medi-Clinic to Bidco board
- The non-executive director to be appointed by Medi-Clinic to the board
of Bidco shall be an independent director and shall not be a serving member of
the board of either Medi-Clinic or Remgro Limited.
- Future hospital acquisitions by Medi-Clinic
- Medi-Clinic must notify the Competition Commission of all future
hospital acquisitions.
For further details please access the Competition Commission website at
www.compcom.co.za.
The approval by the Competition Tribunal is the only outstanding condition
precedent for the acquisition by Bidco of all the shares in Ahealth, including
Afrox"s 69 percent shareholding in Ahealth. Should the transaction be
conditionally approved by the Competition Tribunal, Afrox shall be entitled to
accept such conditional approval and by doing so, bring about the fulfillment of
the last condition precedent.
Ends
Issued by African Oxygen Limited
For further information
Chris Fieldgate (011) 490-0430 / 082 495 1481
Ros Beart (011) 490 0712 / 082 891 5149