Battle for ErongoMed’s soul continues

JEMIMA BEUKES WINDHOEKWhen Erongo Medical Group (EMG) shareholders got into business together years back, never in their wildest dreams did they think that their partnership would implode and leave them battling it out in the courts for ownership of the country’s biggest private healthcare group.Shortly after the news broke in May that one of the shareholders, Dr Tshali Ithete, dragged five of his fellow shareholders to court in a bid to reverse a multimillion share sale, his partners grouped together and informed the court that they would be opposing the application.The five being challenged by Ithete are Brian Douglas Family Trust, Dr Hofmeyer Viljoen, Pitout Family Trust, Mathias Braune Family Trust and Dr Chris Wessels Fourie.In his affidavit, through his company Diversified Medical Investments, Ithete claims EMG sold 510 shares valued at N$23.3 million to Eos Capital’s special purpose vehicle Allegrow Fund - allegedly without following due procedures. The purchase price, according to court papers, was set at N$45 698 per share.I Care Africa, Allegrow Fund and Diversified Medical Investments are the biggest shareholders in the Erongo Medical Group stable.Ithete said the shares were sold despite him having indicated that he wanted to purchase them. He argued that the EMG shareholders’ agreement makes provision for shareholders to get the first right to buy any shares being sold before such shares are sold to third parties.In court papers filed on Tuesday, the group disputed the claim that trustees were obligated to offer to sell shares to one of the partners, said an agreement was reached between shareholders in November 2007.Not a purchase offerThe defendants said the agreement did not provide for any rights or obligations since Ithete’s offer was mere email correspondence and not a purchase offer.They also submitted that this purchase offer was not authorised by any of the shareholders, anyway.They dismissed Ithete’s claim that whenever a shareholder offered their shares to an existing shareholder, such an offer would be irrevocable for a 14-day period.They further denied his claims that EMG offered 76 shares to a purchase price offer made by EOS Capital as well as that the Matthias Braune Family Trust offered 74 shares to EOS Capital.They also denied his claim that Dr Hofmeyer Viljoen offered 86 shares for sale in response to the offer to purchase shares in the first defendant made by Eos Capital.EMG denied that it was in breach of the agreement entered into on 24 September 2020 between Diversified Medical Investments and the other shareholders.They urged the High Court to dismiss Tshali’s application with costs, including for one instructing lawyer and two instructed counsels.The private healthcare group owns the Welwitschia Hospital in Walvis Bay and has interests in radiology and telemedicine, among other segments. It also runs Ongwediva Medipark and Medixx Occupational Health Services.

Battle for ErongoMed’s soul continues

Comments

Namibian Sun 2025-04-02

Please login to leave a comment

Battle for ErongoMed’s soul continues

Comments

Namibian Sun 2025-04-02

Please login to leave a comment

Login