Georgia Healthcare Group PLC The acquisition of two community hospitals (8512L)
July 24 2017 - 1:00AM
UK Regulatory
TIDMGHG
RNS Number : 8512L
Georgia Healthcare Group PLC
24 July 2017
London, 24 July 2017
GHG announces the acquisition of two
strategically located community hospitals
Georgia Healthcare Group PLC ("GHG" or the "Group"), announces
that its healthcare service business has signed a Sale and Purchase
Agreement to acquire 100% share capital (the "Transaction") of
Khashuri and Qareli community hospitals (together the "Hospitals")
from IC Group member companies (the "Seller"). IC Group is an
insurance company operating in Georgia and owns several
small-to-medium sized hospitals. The transaction is in line with
the healthcare services business strategy to expand its presence
across the country, especially in underrepresented regions of
Georgia. Following the acquisition of these Hospitals, the number
of community hospitals in the Group has increased to 22, with 555
beds in total.
The Hospitals are located in the Khashuri and Qareli regions,
which have a combined population of c.100,000 people, and they
operate with 65 and 25 beds respectively. Both hospitals are the
sole healthcare services providers in their respective regions and
are next to the new central highway connecting East and West
Georgia. Khashuri hospital is also the referral centre for three
other nearby towns.
The healthcare services business will pay GEL 10.0 million cash
consideration to the Seller. The Hospitals are valued at GEL 13.7
million, including investment needs of GEL 3.7 million, implying a
5.5x EV/EBITDA multiple.
"I am very pleased to announce the acquisition of these two
community hospitals, which expands our healthcare services business
coverage in these strategically important locations, where we
previously had no presence. The Hospitals have favourable locations
to capture the major traffic from the new central highway at the
same time as being the sole healthcare service providers in these
regions. The Transaction further enables us to refer patients to
our referral hospitals, primarily in Kutaisi and Tbilisi, thus
providing potential revenue synergies. Finally, the Transaction
will also strengthen our outpatient capacity in these two regions,
since our community hospitals are well suited for providing full
scale ambulatory services," commented Nikoloz Gamkrelidze, CEO of
Georgia Healthcare Group.
Name of authorised official of issuer responsible for making
notification: Ekaterina Shavgulidze, Head of Investor Relations
About Georgia Healthcare Group PLC
Georgia Healthcare Group PLC is a UK incorporated holding
company of the largest healthcare services provider in the
fast-growing, predominantly privately-owned, Georgian healthcare
services market. GHG's leadership position is underpinned by
offering the most comprehensive range of inpatient and outpatient
services targeting the mass market segment through its vertically
integrated network of 35 hospitals and ten ambulatory clusters
(consisting of 13 district ambulatory clinics and 28 express
ambulatory clinics), as at 31 March 2017. GHG is the single largest
market participant, accounting for 23.4% of total hospital bed
capacity in the country, as of 31 March 2017. From January 2017,
GHG became the largest pharmaceuticals retailer and wholesaler in
Georgia, with approximately 29% market share based on 31 December
2015 revenue figures. GHG is also the largest provider of medical
insurance in Georgia with a 35.3% market share based on net
insurance premiums earned and approximately 135,000 insurance
customers as at 31 March 2017. GHG employed a total of c.14,600
people as at 31 March 2017, including c.3,300 physicians.
For further information, please visit www.ghg.com.ge or
contact:
Nikoloz Gamkrelidze Irakli Gogia Ekaterina (Eka)
Shavgulidze
CEO CFO Head of Investor
Relations
+995 322 550505 +995 322 550505 +995 322 444
(5077) (5088) 205
ngamkrelidze@ghg.com.ge irakligogia@ghg.com.ge ir@ghg.com.ge
This news report is presented for general informational purposes
only and should not be construed as an offer to sell or the
solicitation of an offer to buy any securities
This information is provided by RNS
The company news service from the London Stock Exchange
END
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