Swedish venture capital company Medicover, formerly Oresa Ventures, has announced a post goodwill amortization loss of E11.8m for the year 2000. It has also said that its board will recommend to shareholders that its focus should be solely on healthcare and that it should become an operating healthcare company.
The former private equity company announced a profit of E6.3m before goodwill amortization equivalent to E0.54 per share. Its greatest expense however was the E18.2m consolidation of Medicover which was written off entirely against the year’s result, leading to a net loss of E11.8m. Equity after goodwill amounted to E44.6m.
Oresa Ventures originally invested in Medicover in 1995, when it was in a start-up phase. It gradually increased its ownership and in 1999 issued Oresa Ventures shares in exchange for practically all the outstanding Medicover shares. It currently holds 95 per cent of the shares. Last month, having decided to focus exclusively on healthcare, Oresa Ventures took on the name Medicover.
Medicover has a significant market share as a healthcare provider in Poland, Romania, Hungary and Estonia. It operates more than 30 clinics and has a subscription base of over 70,000 clients. It will not make any further investments in unlisted shares.
Oresa Ventures’ most successful exit in 2000 was from Brewery Holdings, the largest brewery group in Romania. The investment generated an IRR return of more than 100 per cent.
The company’s remaining portfolio will be exited over the next three years. The same team will manage it. Fredrik Rågmark will continue to serve as managing director, and Jonas af Jochnick as chairman. Joe Ryan remains as financial director and Paul Lenz, currently responsible for the operations of Medicover N.V., will hold the position of business development and medical director.