New Clicks Holdings Limited Health Care Update; Co
New Clicks Holdings Limited Health Care Update; Court Case Settlement
New Clicks Holdings Limited
Press release
New Clicks Holdings Limited Healthcare Update; Court Case Settlement
The group has reported extensively on its healthcare initiatives including on
its arrangements with Purchase Milton & Associates (Proprietary) Limited
("PMA"). In brief summary the group has funded PMA to acquire a number of
strategic pharmacies throughout South Africa, which will be acquired by the
group in the event that the pharmacy laws change to allow for this. The group
also renders certain services to PMA and its pharmacies in return for fees,
which services are destined to enhance and improve the efficiency and
profitability of those pharmacies long term.
Loans to PMA at the end of the year amounted to R355 million. During the year
under review interest amounting to R45,5 million (2001 - R10,1 million) was
charged to PMA in respect of the funding provided. In addition the group also
received R11,4 million (2001 - R4 million) in respect of the services so
rendered.
Not unexpectedly, PMA has incurred losses in this, the integration and
consolidation phase of its business. However, the directors of the company are
satisfied that the fair value of the loans advanced to PMA, calculated on the
basis of the value in use, exceed the carrying amounts.
As previously reported, a company called Van Staden & Stoltz (Proprietary)
Limited instituted proceedings against the South African Pharmacy Council, aimed
at reviewing the Council`s decision to register PMA. The group is pleased to
advise that it has concluded a settlement with the applicant in this case, the
Pharmaceutical Society of South Africa and United South African Pharmacists
pursuant to which these proceedings will be withdrawn. More importantly in the
long term, a consultative forum will be established with these representatives,
aimed at promoting dialog between corporate non pharmacists and independent
retail pharmacists and their representatives on corporate participation in
pharmacy and assisting government in implementing its National Drug and Health
Policy including, but not limited to, in respect of the affordability and
accessibility of pharmaceutical products and services. The group believes that
this is a key development in facilitating meaningful corporate participation in
pharmacy in South Africa to the benefit of all stakeholders in the South African
healthcare industry including pharmacists and the South African population in
general. A joint announcement by all the parties will be made shortly.
Date: 14/10/2002 02:03:32 PM Produced by the JSE SENS Department
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