-3x Short China Regulatory News (SCHE)

15 Nov 2007 07:02

Southern Cross Healthcare Grp PLC15 November 2007 Southern Cross Healthcare Group PLC Portfolio Update Including Divestment of Avery Freeholds and the Acquisition of Learning Disability Home Thursday, 15 November 2007 - Southern Cross Healthcare Group PLC (LSE: SCHE)('Southern Cross' or the 'Company'), the UK's largest care home provider, todayprovides an update on its portfolio, including the acquisition of a specialistlearning disability business, the completion of the divestment of the freeholdinterests in relation to the acquisition of Avery Healthcare in June 2007, andthe re-registration of the homes acquired from Bondcare in September 2007. Southern Cross announces today that it has acquired a specialist learningdisability business providing 46 beds across three sites in Shropshire. Thebusiness will be integrated within the Company's Active Care Partnerships brand,which provides a range of residential, nursing and supported living servicesacross the United Kingdom for people with learning disabilities and acutepsychiatric illness. Following today's acquisition, the Group now operates 46homes and 1,033 beds under the Active Care Partnerships brand. Commenting on today's announcement, Bill Colvin, Chairman of Southern Cross,said: "Whilst the majority of our acquisitions since listing on the Londonmarket last year have been in the elderly care sector of our business, we seesignificant potential for growth in the learning disability sector. Today'sacquisition is a further step to consolidate our presence in this important andgrowing market." The Company also reports today that it has completed the divestment of thefreehold interests of the 15 care homes originally acquired from AveryHealthcare in June 2007. Aligned with the Company's acquisition strategy, theamount raised from the sale of these freehold interests is equal to theenterprise value of £95.5 million paid for the homes. In addition, there-registration of 39 care homes acquired from Bondcare in September 2007 hasnow been granted. Consequently, Southern Cross has now completed theacquisition of the trade and assets of these homes and the management agreementhas come to an end. - ends - Enquiries: Southern Cross Healthcare Group PLC Tel: +44 (0)1325 351100Bill Colvin, ChairmanGraham Sizer, Finance Director Financial Dynamics Tel: +44 (0)20 7831 3113David YatesDeborah ScottEmma Thompson 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