AMEI African Med

TIDMAMEI

RNS Number : 4020F

African Medical Investments PLC

15 June 2012

African Medical Investments plc / Index: AIM / Epic: AMEI / Sector: Healthcare

15 June 2012

African Medical Investments plc ('African Medical' or 'the Company')

Divestment of Air Evacuation Subsidiary

African Medical Investments plc, the AIM listed company operating in the African healthcare sector, is pleased to announce that it has agreed the sale of its wholly owned subsidiary, AMI Aviation Services (Pty) Ltd ('AMI Aviation'), for US$1.3 million. The disposal is in accordance with the Board's strategy of consolidating the Company's portfolio of specialist private hospitals and improving its financial performance. In particular, the proceeds will be invested in the Company's current portfolio of specialist hospitals and will facilitate the roll out of further medical facilities in targeted markets in sub-Saharan Africa.

African Medical Chief Executive Officer, Peter Botha said, "African Medical's expertise lies in the management and operation of private specialist hospitals and in line with this, the divestment of our air evacuation subsidiary will enable the Company to focus on consolidating and expanding this primary business. The funds raised from the sale of this subsidiary will be used to complete the turnaround of our portfolio and enhance the service offering at our hospitals."

Further Details

African Medical has signed an agreement with Hotline Holdings (Proprietary) Limited to sell its entire interest in AMI Aviation, being 100% of the equity and the loan account, with effect from 31 May 2012. The primary asset of AMI Aviation is a Dassault Falcon 20F-5BR medical evacuation jet and associated medical equipment.

The total consideration of US$1.3 million will be paid as follows:

   --    10% already received 
   --    60% payable on completion of the sale agreement 
   --    Remaining 30% to be paid within 135 days of completion of the sale agreement 

Losses attributable to AMI Aviation since commencement of operations in March 2011 to the date of disposal totalled approximately US$2.4 million.

The transaction will result in an impairment loss to African Medical of approximately US$1.165 million to be recognised in the results for the year ended 29 February 2012.

** ENDS **

For further information please visit www.amiplc.com or contact:

 
 Peter Botha        African Medical Investments   Tel: +44 (0) 20 7408 
                     Plc                           9200 
 Jonathan Wright    Seymour Pierce Ltd            Tel: +44 (0) 20 7107 
                                                   8000 
 David Foreman      Seymour Pierce Ltd            Tel: +44 (0) 20 7107 
                                                   8000 
 David Hart         Daniel Stewart & Company      Tel: +44 (0) 20 7776 
                     Plc                           6550 
 Martin Lampshire   Daniel Stewart & Company      Tel: +44 (0) 20 7776 
                     Plc                           6550 
 Susie Geliher      St Brides Media & Finance     Tel: +44 (0) 20 7236 
                     Ltd                           1177 
 

Notes

African Medical Investments plc (AIM: AMEI) provides international standard healthcare through private hospitals across Africa, targeting the expanding African middle classes and the expatriate, non-governmental organisations, diplomatic and tourist markets. The Company owns and operates private hospitals in sub-Saharan Africa and its current focus is on improving occupancy rates and optimising the space of these facilities. The expansion of the portfolio remains a longer term focus either through the construction of new hospitals or investments in existing facilities.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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