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African Medical Investments

  • BY: Andrew Hore |
  • POSTED: 03/10/2008 |

African Medical Investments is making its first acquisition since joining AIM.

It is paying up to £5m in shares worth 12.5p each for VIP Healthcare Solutions Mauritius. The business manages two trauma and health clinics in Johannesburg, South Africa, and in Harare, Zimbabwe. A third is planned for Dar-es-Salaam, Tanzania and should open early in 2009.

The clinics offer trauma, obstetrics, operating theatres, occupational health and well woman services. The company believes that demand for these services is increasing from the expanding middle class and expatriates.

AMI will use its management’s experience to help VIP Healthcare open additional clinics in Lubumbashi in the Katanga Province of the Democratic Republic of the Congo, Maputo in Mozambique and other areas in Africa.

Dr Vivek Solanki will become chief executive of AMI.

Isle of Man-registered AMI raised £5.1m at 10p a share when it joined Aim on 27 June 2008, wich valued the company at £5.6m. It started out as a shell that plans to acquire businesses involved in healthcare in Africa.

The initial consideration is 16m shares with a further 8m issued when the Dar-es-Salaam clinic opens. If profits exceed $2.5m for the year to February 2010 then the full deferred consideration of 16m shares will be issued.

The shares were suspended at 12.25p each when the acquisition was announced. That values the existing share capital at £6.86m. Shareholders will have to approve the reverse takeover transaction. The shares should return from suspension when the acquisition document is published.

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