RH Boph­elo lists on the JSE in the Non-Eq­uity sec­tor

The Star Early Edition - - COMPANIES - Them­be­lihle Mkhonza Marc Jones

HEALTH ser­vices com­pany RH Boph­elo yes­ter­day listed on the JSE as a pur­pose ac­qui­si­tion com­pany with its shares trad­ing largely un­changed at R10.

The com­pany, which be­came the ninth list­ing on the bourse this year, said that it would fo­cus its in­ter­ests in the health­care sec­tor with the pur­pose of trans­form­ing the in­dus­try.

It said it would also pur­sue ac­qui­si­tions of health­care as­sets in ex­cep­tion­ally man­aged com­mer­cial en­ti­ties or spe­cial sit­u­a­tions across the South African mar­ket.

RH Boph­elo joined five other com­pa­nies in the Non-Eq­uity In­vest­ments In­stru­ments sec­tor of the ex­change which cur­rently has a to­tal mar­ket cap­i­tal­i­sa­tion of R2.17 bil­lion.

The com­pany was in­cor­po­rated as a pri­vate com­pany last year in De­cem­ber un­der the name New­shelf 1388 Pro­pri­etary Lim­ited. In June the com­pany was con­verted into a pub­lic com­pany and re­named RH Boph­elo Lim­ited.

Chief ex­ec­u­tive Quin­ton Zunga, yes­ter­day said “RH Boph­elo will fur­ther pro­vide in­vestors with ac­cess to a highly sought af­ter as­set class associated with high growth, cash gen­er­a­tive re­turns and di­rect real as­set ex­po­sure to the de­fen­sive health­care sec­tor”.

Zunga said RH Boph­elo aimed to in­crease ac­cess to qual­ity health­care among peo­ple in the lower to mid­dle-in­come brack­ets who were not able to af­ford pri­vate health­care as it was cur­rently struc­tured in South Africa.

He said the com­pany would de­liver tra­di­tional al­ter­na­tive as­set class re­turns through a port­fo­lio of op­er­at­ing.

“To achieve this, the com­pany will in­vest in hos­pi­tals al­ready in op­er­a­tion, brown­field projects where li­cences to op­er­ate are al­ready in place as well as in other health­care funds and re­lated sub sec­tors.”

The com­pany said it would also ex­plore pos­si­bil­i­ties of co-in­vest­ing with Ra­zorite Health­care and Re­ha­bil­i­ta­tion Fund and other like minded com­pa­nies that met its cri­te­rion.

Zunga said RH Boph­elo would also re­main a black­owned in­vest­ment com­pany, but would ag­gres­sively pur­sue in­ter­ests in health­care as­sets such as hos­pi­tals that pro­vided af­ford­able health­care.

He said that the com­pany would de­liver tra­di­tional al­ter­na­tive as­set class re­turns through a port­fo­lio of op­er­at­ing com­pa­nies that par­tic­i­pate in a broad ar­ray of health­care spe­cific sec­tors whilst pro­vid­ing in­vestors with day-to-day liq­uid­ity, ac­cess to a world-class man­age­ment team and greater trans­parency.

The list­ing comes as Health Min­is­ter Aaron Mot­soaledi in­ten­sify the im­ple­men­ta­tion of the Na­tional Health In­sur­ance (NHI), charg­ing that it would be com­pul­sory for all South African cit­i­zens.

Last month Mot­soaledi an­nounced that the NHI white pa­per, which was ap­proved by the cabi­net, may be fully op­er­a­tional by 2025. He said, once the law was passed, it would be­come manda­tory for ev­ery cit­i­zen to be on the NHI. MORE gov­ern­ments were likely to see their sov­er­eign credit rat­ings cut this year, S&P Global said yes­ter­day.

An av­er­age of more than one coun­try a week has had its rat­ing cut by the big rat­ing agen­cies – S&P, Moody’s and Fitch – since the start of 2014.

A new re­port from S&P showed it had 30 sov­er­eigns on down­grade warn­ings, or “neg­a­tive out­looks” in rat­ing firm par­lance, at the start of the month, com­pared with just six on pos­i­tive out­looks.

“This out­look dis­tri­bu­tion sug­gests that neg­a­tive rat­ing ac­tions are likely to con­tinue to out­num­ber pos­i­tive ac­tions over the com­ing 12 months,” S&P said in a mid-year re­view of its rat­ing moves.

Some of the big economies with neg­a­tive out­looks on their rat­ings in­cluded Brexit-bound Bri­tain, which last year be­came the first AAA coun­try to be cut by two rat­ing notches at once, and still triple-A Aus­tralia.

South Africa, which is be­ing hit by po­lit­i­cal un­cer­tainty and weak growth, is also on the list along­side other emerg­ing mar­ket heavy­weights such as Mex­ico, Tur­key and Brazil. – Reuters


From left to right: Nicky New­ton-King, chief ex­ec­u­tive of the JSE; Quin­ton Zunga, found­ing part­ner and chief ex­ec­u­tive RH Boph­elo; John Oliphant, its chair­per­son and Fulu Mak­wetla, chief ex­ec­u­tive, Third Way In­vest­ment Part­ners and ad­viser, RH Boph­elo.

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