EOH Abantu, a wholly-owned subsidiary of EOH, has entered into a sale of shares agreement with Afrocentric Health (RF) to dispose of all of its shares in Dental Information Systems Holdings (Denis) for a total value of R250-million.
Denis, together with its subsidiaries was acquired by EOH in 2012 to provide healthcare technology capability and dental claims risk management as well as dental insurance intellectual property.
The sale of The Denis Group is in line with EOH’s stated strategic intent of selling non-core assets as it seeks to right-size the organisation.
AfroCentric is a black-owned, diversified investment holding company with a presence in the healthcare industry through a number of healthcare assets, including its ownership of Medscheme.
The Denis Group business is aligned with AfroCentric’s strategic growth objectives and the transaction is considered a compelling opportunity for Denis employees.
The cash consideration received by EOH Abantu will primarily be utilised to reduce debt which is consistent with EOH’s objective of creating a fit-for-purpose capital structure.
EOH Abantu is disposing all of its shares in Denis to the buyer for a purchase consideration of R170-million. Prior to the completion date of the transaction, Denis shall be entitled to distribute a cash dividend of R80-million EOH Abantu, in its capacity as the sole shareholder.