| Fri 9 Nov 2007, 14:40 | | WKF - Workforce Holdings - Acquisition of Healthca |
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WKF
WKF
WKF - Workforce Holdings - Acquisition of Healthcare Staffing Business
Workforce Holdings Limited
(Registration number 2006/018145/06)
(JSE code: WKF & ISIN number: ZAE000087847)
("Workforce" or "the Company")
ACQUISITION OF HEALTHCARE STAFFING BUSINESS
1.Introduction
Shareholders are advised that Workforce, through a wholly owned subsidiary,
has acquired the business of Albrecht Nursing Agency CC ("ANA")("the
acquisition"), excluding its debtors book, certain assets and liabilities.
The agreement does not contain any warranties that are unusual in
transactions of this nature.
The acquisition is classified as a Category 2 transaction in terms of the
Listings Requirements of the JSE Limited ("Listings Requirements") and in
accordance therewith the information set out below is provided.
2.Nature of business
ANA is a staffing business focused on the recruitment and placement of
healthcare workers, both on a permanent and temporary basis. ANA is primarily
based in the Western Cape supplying nurses and healthcare workers to
hospitals and old age homes.
3.Rationale
Workforce currently has a small exposure to the healthcare staffing segment
of the industry, through the supply of a limited number of nursing staff in
the Gauteng region. The acquisition of ANA allows Workforce to gain exposure
in the Western Cape and provides a more meaningful platform to grow this
segment of its business, both organically and through acquisition.
4.Consideration
The effective cost of the acquisition will amount to between R8,0 million and
R9,0 million. An amount of R4,2 million was paid to the vendor from existing
cash resources and a further amount of R1,0 million is payable in monthly
installments over the next twelve months. The balance of the cost represents
the estimated investment in working capital and the debtors book.
5.Effective date and conditions precedent
The effective date of the acquisition was 23 September 2007 and all the
conditions precedent in respect thereof have been fulfilled.
6.Financial effects
The effect of the acquisition on the historical earnings and headline
earnings per share and on the net asset and net tangible asset value per
share of the Company are less than 3% and thus not regarded as significant in
terms of the Listings Requirements. Accordingly, no pro forma financial
effects have been provided.
Johannesburg
9 November 2007
Designated Advisor
Ernst & Young Sponsors (Pty) Ltd
(Reg. No. 2000/031843/07)
Date: 09/11/2007 14:40:45 Produced by the JSE SENS Department.
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