JSE-listed technology services group EOH’s EOH Abantu subsidiary has announced it will sell all of its shares in Dental Information Systems Holdings (Denis) to Afrocentric Health for R250-million.
Denis and its subsidiaries were acquired by EOH in 2012 to provide the group with healthcare technology capability and dental claims risk management, as well as dental insurance intellectual property.
EOH said the sale was in line with the strategic intent of selling noncore assets as it seeks to right-size the organisation.
Afrocentric Health is a subsidiary of AfroCentric Investment Corporation, which is a black-owned investment holding company with interests in the healthcare industry through a number of healthcare assets, including its ownership of a medical scheme administrator and managed care organisation called Medscheme.
EOH Abantu will use the funds from the transaction to reduce debt.
The value of Denis’ assets is about R145-million. Its profit after tax for the year ended July 31 was R34-million.
EOH had hoped to earn R1-billion from disposals for the 2019 calendar year, which it had exceeded as a result of the Denis transaction.