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African Medical Investments agrees US$47 mln equity line with Harbinger Capital fund for expansion plans

Last updated: 04:10 30 Oct 2009 EDT, First published: 05:10 30 Oct 2009 EDT

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African Medical Investments PLC (AIM: AMEI) has agreed a US$47 million equity line with an investment fund managed by New York based Harbinger Capital Partners LLC.

The strategic investment from Harbinger Capital Partners Master Fund I Ltd secures the financing for the roll-out of boutique hospitals, Well Woman Clinics and trauma centres across Africa, targeting a total of ten healthcare facilities to be operational by 2012.

As part of the agreement, Lawrence M Clark Jr, managing director of Harbinger Capital Partners, will be joining the board of African Medical as a non-executive director.

African Medical CEO Dr Vivek Solanki said: “Our target of having ten sites operational by 2012 is now well within our grasp.”

The company currently manages the Dar es Salaam Trauma Centre & Well Woman Clinic, The Airport Medical & Travel Vaccination Centres at Johannesburg International Airport and Cape Town International Airport and the Trauma Centre in Harare.

The next phase of African Medical's growth will commence with the opening of a second boutique hospital, trauma centre and Well Woman Clinic in Maputo, Mozambique, which is targeted to be operational in March 2010. This facility will replicate African Medical's current flagship medical centre in Dar es Salaam, which benefits from a fully operational trauma centre with 30 beds including four Intensive Care Unit beds and two neonatal ICU incubators.
Assuming a full draw-down of the facility, at the end of the three year period Harbinger will own 50 percent plus 1,000 shares of the total issued share capital of African Medical.

By that time, being the first quarter of 2013, the board expects that the company's portfolio of medical facilities will have reached critical mass and future expansion will be funded from internal cash flow.

African Medical Investments is the parent company of VIP Healthcare Solutions Ltd which provides healthcare in niche areas, particularly to the expanding African middle classes and the expatriate, non-governmental organisations, diplomatic and tourist markets.

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