Dis-Chem Pharmacies Limited plans to acquire half of insurer OneSpark in line with its strategy to offer a portfolio of health-centric financial services products.
The group announced on Friday it has entered a binding share subscription agreement with OneSpark and OneSpark Holdings to subscribe to a 50% interest in OneSpark for a consideration of R155 940 228.
The transaction is subject to the fulfilment of various conditions precedent by 31 August 2024, or a later date as may be agreed to.
OneSpark’s capabilities and financial services expertise will significantly enhance Dis-Chem’s ability to augment and deliver a compelling customer value proposition, centred in an integrated health ecosystem, supporting Dis-Chem’s vision of increasing access to quality healthcare at the lowest cost, Dis-Chem said in a SENS announcement.
OneSpark’s policies are underwritten by Guardrisk Life.
In its annual results to the end of February 2024, Dis-Chem said it has identified eight strategic focus areas aimed at enhancing shareholder returns over the long term. One of these focus areas (“integrated health ecosystem”) is to “reimagine healthcare access via a portfolio of health-centric financial services products and the synergistic integration with the group’s pharmacy and clinic footprint”.
The results statement described OneSpark as an “innovative life insurance business that possesses the experience, capability, and proprietary technology to offer transformative insurance products that align to the better health mandate of the Dis-Chem brand. This acquisition is a core enhancement to the group’s integrated health ecosystem strategic focus area.”
Another focus area is to “own the online/digital space in health”.
During the 12 months to 29 February 2024, Dis-Chem opened or acquired 15 retail pharmacy stores, bring the total number of pharmacy stores and baby stores to 273 and 54, respectively.
