Lenmed II

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Lenmed Investments Limited (“Lenmed” or the “company”, https://www.lenmed.co.za/lenmed-investment-opportunity/lenmed-corporate-profile/) is a South African Black Economic Empowerment (BEE) company established in 1984 with a clinic in Lenasia. Now the company is 4th  largest private hospital group in South Africa. As in October 2022, Lenmed owns and/or operates a network of 17 hospitals across four countries in Africa (South Africa, Mozambique, Botswana and Ghana), serving over 200,000 patients per year with 2100 beds, over 600 practicing doctors and total staff of about 3,000. This growth has been largely driven by acquisitions, hospital management contracts and building or upgrading hospitals. Number of beds, year of start of operations and number of floors for each hospital are mentioned below. All the hospitals operate in Lenmed owned low-rise buildings except for EHHC. South Africa: Ahmed Kathrada Private Hospital (AKPH), Gauteng [254 Beds, 1983, 3 floors]Zamokuhle Private Hospital (ZPH), Gauteng [94 Beds ~2000, 4 floors]Daxina Private Hospital (DPH), Gauteng [64 Beds, ~2000, 2 floors]Randfontein Private Hospital (RPH), Gauteng [174 Beds, ~1980, 1 floor]La Verna Private Hospital (LPH), KwaZulu Natal (KZN) [149 Beds, ~1980, 3 floors]Shifa Private Hospital (SPH), KZN – [133 Beds, ~1968, 4 floors]Royal Hospital and Heart Center (RHHC), Northern Cape [177 Beds, 2017, 4 floors]Ethekwini Hospital and Heart Center (EHHC), KZN [345 Beds, 2009, 5 floors] (77% owned by Lenmed and managed through a management contract)Kathu Private Hospital (KPH), Northern Cape [55 Beds, 1980s, 1 floor] (67% owned by Lenmed and managed through a management contract)Daleside Day Hospital (DDH), Klerksdorp [20 bed day hospital, 2 floors] (51% owned by Lenmed)Howick Private Hospital (HPH), KZN [48 beds, 2 floors] (99% owned by Lenmed and managed through a management contract)Parkmed Neuroclinic, Neserhof [50 beds, 1 floor] (66% owned by Lenmed)Suningdale Hospital, Klerksdorp [62 beds, 2 floors]Wilmed Park Hospital, Klerksdorp [202 beds, 2 floors]  Mozambique:  Maputo Private Hospital (MPH), Maputo [105 Beds, 2012, 2 floors] Botswana:  Bokamoso Private Hospital (BPH), Gaborone [235 Beds, ~2009, 2 floors] (70% owned by Lenmed and managed through a management contract) Ghana:The Bank Hospital (TBH), Accra [70 Beds, 2021, 3 floors] (managed through a management contract) The hospitals mentioned from 10 to 14 have recently been acquired by Lenmed. All hospitals are in low rise buildings only. Lenmed has all major medical and surgical disciplines with 24-hour emergency care at all facilities including various specialty services.  The proposed investment is a common equity investment of up to US$28m (ZAR equivalent) for a ~10.2% stake in Lenmed for expanding its portfolio to 2,800+ beds over the next 4-5 years through organic growth and acquisitions both within South Africa and the Southern and Eastern Africa Region (the “project”). The immediate pipeline for acquisition includes eight hospitals in South Africa with 1000 beds and addition of 300 beds in AKPH, ZPH, RHHC, LPH and SPH.