AfroCentric to sell Activo Health for up to R600m

AfroCentric Investment Corporation Limited announced the disposal of its wholly-owned subsidiary, Activo Health Proprietary Limited, and its subsidiaries, to FHC Farmaceutica, S.A. and FHC Proprietary Limited. The transaction, effective December 23, 2025, includes an upfront payment of R350 million on a cash-free, debt-free basis, a deferred payment based on net debt and working capital adjustments, and an earnout payment of up to R250 million contingent on Activo's future performance. This brings the potential total consideration to R600 million.

The sale is a Category 1 transaction under JSE Listings Requirements, necessitating shareholder approval via an Ordinary Resolution. The AfroCentric Group plans to use the majority of the proceeds to deleverage its balance sheet, reducing interest expenses and improving operational sustainability, with the remainder funding strategic initiatives.

This strategic move allows AfroCentric to refocus on its core strengths in health administration, managed care, and corporate solutions, realising value from non-core assets. As of June 30, 2025, Activo’s consolidated net assets were R299 million, with a profit of R9 million for the six months ending on that date.