South African Afrox will sell its entire stake in Life Healthcare Holdings to a black investor consortium for R850m.

The company says the consortium comprises Brimstone Investment Corporation, Mvelaphanda Strategic Investments, Life Healthcare management and staff.

The company said: "This transaction will allow Afrox to realise a substantial return on its investment in Life Healthcare, and completes the process of divesting Afrox's healthcare interests and focusing on its core industrial gas, welding, LPG and safety business."

Afrox acquired Life Healthcare for R375m in March 2005 to help facilitate a black economic empowerment (BEE) transaction.

The proceeds of the transaction will be used to reduce debt and to help fund current capital expenditure programmes.

The effective date of the sale transaction will be Friday 29 September.

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