SA firm snaps up MRI from BOMAID
Pauline Dikuelo | Monday November 25, 2024 10:56
Competition and Consumer Authority (CCA) has acknowledged receipt of the merger bid, noting that upon the implementation of the proposed transaction, Abovax will have a controlling stake in MRI Botswana.
Currently, MRI is owned by Botswana Medical Aid (BOMAID), the Motor Vehicle Accident (MVA) Fund, and individuals. BOMAID through its investment arm, Southview holds the majority stake of MRI at 94%, whilst MVA Fund owns four percent and the individual shareholders account for the balance.
The deal is expected to bring fresh capital, expertise, and strategic direction to MRI, further enhancing its service delivery and market position.
MRI Botswana operates clinics, pharmacies, and emergency response services throughout the country, accessible to BOMAID members and other medical aid societies.
The company is a multi-faceted healthcare services provider with five core business units: Emergency Medical Services (EMS), general medical services, pharmacies, a training academy, and a contact centre. EMS focuses on pre-hospital emergency care and patient transportation, whilst the general medical services unit manages Prime Health clinics and occupational healthcare facilities. The pharmacies offer courier services and innovative Collect & Go technology lockers for medication distribution. The training academy caters to MRI’s internal medical training needs, and the contact centre provides outsourced services such as care lines and counselling. Furthermore, MRI has been providing services to three of the country’s top four medical aids.
“Abovax’s interest represents a pivotal opportunity for MRI to grow and expand its services under new leadership. “The South African firm’s plans for the 60% stake acquisition signal confidence in MRI’s capabilities and potential within the healthcare industry,” reads a statement from CCA.
The decision to sell a majority stake in MRI comes after years of deliberation for BOMAID which has been planning to divest from the company. According to BOMAID, the process of divesting was initially delayed due to operational challenges within MRI. Officials previously explained that BOMAID was reluctant to sell while MRI’s operations were unstable, as the goal was to ensure a strong foundation before finding a suitable partner aligned with their vision.
BOMAID has indicated that this partnership will enable MRI to thrive whilst allowing BOMAID to focus on its core business of medical aid provision.