Exit stage left
TheSPECtacle NOTES soon-to-be-secondarily listed private equity specialist BLACKSTAR has the knack of exiting investments very profitably. Finweek has previously recorded Blackstar’s almost R150m “turn” made on DCD-Dorbyl – a transaction that netted a rather nifty return on investment of 2,8 times money over a 20-month holding period.
Naturally, TheSPECtacle’s beady eye has fallen on Blackstar’s already very profitable investment in Litha Healthcare – which not too long ago looked uninspiring in its former guise as Myriad Medical. While Blackstar has already made the easy money, TheSPECtacle suspects there won’t be any immediate plans to exit Litha – certainly not while its promising vaccine plant in Cape Town is still coming on stream and there are opportunities for bolt-on acquisitions.
Of course, investor demand for quality healthcare counters (and there are only a handful of such listings on the JSE) could force Blackstar to apply its mind to an exit strategy sooner rather than later. As an exit for Blackstar, unbundling would be an obvious option; or perhaps placing the shares with institutional investors.
However, TheSPECtacle reckons Litha might well slot comfortably into the ample flanks of pharmaceutical giant Adcock Ingram (which could use some inspired corporate action to spur sentiment).