-3x Short China Regulatory News (SCHE)

12 Sep 2007 07:02

Southern Cross Healthcare Grp PLC12 September 2007 Southern Cross Healthcare Group PLC Further divestments of freehold interests and expansion of portfolio by 70 beds Wednesday, 12 September 2007 - Southern Cross Healthcare Group PLC (LSE: SCHE)('Southern Cross' or the 'Company'), the UK's largest care home provider,announces today that it has completed the divestment of the freehold interest offour care homes and exchanged on a further three homes which are expected tocomplete by the end of September. These homes were developed or acquired bySouthern Cross in the last six months. In addition the Company also announcesthe completion of an option to acquire five care homes in Scotland and theopening of 70 new beds in Dundee from its development pipeline. The divestment of the seven freehold interests will raise £23.8m, equating tothe original enterprise value paid, and thus Southern Cross has been able toacquire the operating businesses for minimal consideration. Southern Cross nowoperates 34,090 beds in 670 care homes. Commenting on today's announcement, Philip Scott, Chief Executive of SouthernCross, said: "The announcement of these divestments demonstrates our continuingability to acquire operating businesses for a nominal consideration and thuscreate value for shareholders. Our development pipeline also continues to makegood progress and Southern Cross remains well placed to expand its portfoliothrough both acquisitive and organic growth." - ends - Enquiries: Southern Cross Healthcare Group PLC Tel: +44 (0)1325 351100Philip Scott, Chief ExecutiveGraham Sizer, Finance Director Financial Dynamics Tel: +44 (0)20 7831 3113David YatesDeborah Scott Notes to Editors About Southern Cross Southern Cross is, in terms of number of beds, the largest UK provider of carehome services for the elderly and a major provider of specialist services forpeople with physical and/or learning disabilities. The Company's care homes forthe elderly operate under two distinct brands: Southern Cross Healthcare andAshbourne Senior Living. Both brands provide a range of social and personalcare services and nursing care services for elderly people with physicalfrailties and differing forms of dementia. The Company's specialist servicesoperate under the Active Care Partnerships brand and provide long-term careservices for people with physical and/or learning disabilities and for youngerpeople with complex forms of challenging behaviour. Southern Cross is focused on providing high quality care in well investedfacilities, seeking to be the home of choice in each local community in which itoperates. The Company provides care services for most of the local authoritiesin the UK which, together with the NHS, represent over circa 70% of theCompany's revenues. Its care home portfolio is largely purpose-built with ahigh percentage of single occupancy rooms and rooms with ensuite bathrooms.Occupancy levels in its core elderly segment are consistently in excess of 90%. This announcement includes statements that are, or may deemed to be, "forwardlooking statements". These forward looking statements can be identified by theuse of forward looking terminology, including the terms "believes", "estimates","plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparableterminology. These forward looking statements include matters that are nothistorical facts and include statements regarding the Company's intentions,beliefs or current expectations concerning, among other things, the Company'sresults of operations, financial condition, liquidity, prospects, growth,strategies and the outlook on the care home industry. By their nature, forwardlooking statements involve risk and uncertainty because they relate to futureevents and circumstances. This information is provided by RNS The company news service from the London Stock Exchange