Bomaid in talks for MRI’s 45% stake
Pauline Dikuelo | Monday August 29, 2022 06:00
“Yes, this is true. BOMAID is currently in talks with a potential investor. However, due to the sensitive nature of such discussions and a binding non-disclosure agreement signed by the two parties we are not at a point to disclose any further information at this point,” he said.
Bomaid currently holds 94% shareholding in its subsidiary MRI and seeks to divest 45% of its shares. MRI operates clinics, pharmacies, and emergency-response services throughout the country accessible by Bomaid and other medical aid societies.
MRI has been providing services to three of the country’s four medical aid providers and market-related issues have led to a decision to divest.
The private medical aid provider had earlier wanted to divest from MRI but the wheels turned slowly as Bomaid was experiencing some challenges stabilising its operations. At the time, Bomaid did not want to sell a shaky business. The medical aid company also needed to get the board to agree to the decision and wanted to find a suitable partner to share in their vision.
MRI Botswana had a difficult 2020, with an operating loss of P1.3 million down from an operating surplus of P780,000 in 2019, as COVID-19 restrictions reduced foot traffic at its clinics and pharmacies. Earlier this year, Bomaid said it spent P100 million on COVID-19 coverage. Its directors, who described MRI’s performance in 2020 as ‘tumultuous’, said they believed by allowing the business to be less encumbered to the ultimate holding company, MRI would be poised to broaden its customer base and grow to give more profitable returns to Bomaid. Meanwhile, Bomaid has announced that it embarked on a transformative strategy which is about moving medical aid from the traditional way of doing business to promoting healthy living that delays and curbs the onset of illness, especially lifestyle diseases.