Advanced Health Set To Delist From The JSE
Advanced Health Set To Delist From The JSE. Advanced Health has concluded an agreement with Eenhede Konsultante Eiendoms Beperk to make an offer to acquire all of the issued shares of Advanced Health, other than the Advanced Health shares held by VC Family Trust, Carl Grillenberger Family Trust and Pres Medical Witbank Proprietary Limited. Implementation of this will result in Advanced Health’s delisting form the JSE.
Advanced Health listed on the JSE in 2014. Its reasons for listing included, inter alia, access to institutional investment funding and the potential to use its shares as acquisition currency. Since listing Advanced Health has been unable to attract significant institutional interest to justify the limitations imposed by the regulatory processes and the ongoing compliance costs incidental to being listed on the JSE.
Advanced Health’s ability to raise capital is hampered by the lack of investment interest in small, illiquid counters, as well as the Advanced Health shares trading at a discount to their underlying net asset value which results in any capital raise at market value being highly dilutive to Advanced Health shareholders. In the medium to long- term Advanced Health’s capital raising needs will be better served in the unlisted environment.
Following the disposal of PresMed Australia, the directors of Advanced Health are focusing on turning its South African operations into a profitable business through implementing a number of strategies. As part of this focus, the Advanced Health board of directors has reconsidered whether its smaller asset base (and need to reduce overhead costs) warrants Advanced Health’s continued listing on the JSE. Given the current lack of investment interest in small, illiquid counters, the Advanced Health board is of the view that the costs associated with a JSE listing outweigh the benefits of a JSE listing.
