According to Moneyweb, the JSE-listed Dis-Chem group has announced that it is seeking to acquire an as yet unnamed medical insurance group, withholding the payout of dividends to pay for the expansion.
Earlier this year, it also announced plans to acquire Baby City for R430 million. It is also apparently “investigating” the acquisition of a community-based pharmacy group. In justifying the motivation for the deal, the group said: “Covid-19 has highlighted that individuals and companies are more prepared than ever to spend on healthcare and has also led to a deeper understanding of the importance of mental health, accelerating the need for companies to provide support to employees and their families.
“Through this transaction, the group will benefit from vertical integration into the health value chain, with access to a unique set of assets, in a sector of the healthcare market that is experiencing rapid and sustainable growth,” the group continued.
“All this at margins that are significantly higher than those in the core retail business. This investment also provides access to segments of the population who have historically not been covered by the private healthcare sector. In so doing it will assist in providing deeper access to healthcare to a wider and under-served community,” Dis-Chem concluded.
