South African (Johannesburg Stock Exchange-listed) diversified healthcare group Life Healthcare has announced that the Conditions Precedent for the sale of its Life Molecular Imaging (LMI) business to US-based radiopharmaceuticals-focused company Lantheus has been met. The Conditions Precedent are defined in the Sales and Purchase Agreement and outlined in a Circular to shareholders.

“We are pleased to unlock further value for our shareholders while refocusing our portfolio to grow returns, market share and revenue in the Southern African market,” affirmed Life Healthcare CE Peter Wharton-Hood. “We look forward to seeing the progress of LMI under Lantheus, which will provide further benefit through future earnouts.”

Life Healthcare expected that the net proceeds from the upfront payment would come to about $200-million (some R3.6-billion). The intent of the group, provided its board approves, is to pass these net proceeds on to shareholders within 12 months of the date of completion of the deal.

The sale of LMI follows the 2024 sale of Alliance Medical Group. These sales are part of, and signal major milestones in, Life Healthcare’s strategy of refocusing itself as a diversified and integrated healthcare services provider that is focused on Southern Africa.

But Life Healthcare is not totally divorced from LMI. The deal is so structured that the group’s shareholders can benefit from future LMI income streams. There will be milestone payments connected to performance conditions, up to 2034. And the South African group retains the right to produce, commercialise and distribute LMI products across Africa.

“Going forward, our commitment remains on executing our strategy to grow, drive and optimise the business,” assured Wharton-Hood. “We are fully dedicated to leveraging every opportunity to achieve our objectives and position ourselves for sustained long-term success.”

Life Healthcare operates 63 healthcare facilities across Southern Africa. The services it provides included acute hospital care, acute mental healthcare, acute physical rehabilitation, oncology, renal dialysis, diagnostics (including radiology and nuclear medicine), and health risk management services (including occupational health and wellness).