Mergence eyes black-owned hospital group

Financial services company Mergence wants to launch a large black-owned hospital group and is arranging funding to build a 200-400 bed private hospital in the next 18 months.

The move forms part of its ambitions to take on established, large players such as Mediclinic, Netcare and Life Healthcare. Mergence, which is 11 years old this year, wants to grow its assets under management to R30bn in the next three years and is considering the possibility of listing the company on the JSE in the medium-term. In its asset management division Mergence has R18bn in assets under management. Mergence also created JSE-listed Dipula Income Fund, which has a R5bn property portfolio.

Mergence operates a specialised derivative company, which has executed derivative trades valued at more than R150bn since 2004, and a health company with a hospital bias. Mergence Africa Holdings MD, Masimo-a-badimo Magerman, said there is going to be a lot of focus on the health side of the business. He said Mergence has a number of joint ventures with licence holders and the goal is to establish the company in the hospital space, grow its portfolio and compete with the bigger monopolies. Magerman said it is about time a black hospital group did take them (big hospital companies) on. He said from a group perspective, efforts are being directed towards listing a black hospital group in the next five years.

Business Day, 19 February 2015