XiTe Group: Call to Invest

Health Care Inves ng

Administra on & Management Health Care Marke ng

Health Care Services Informa on & Technology

Health Industry: Business Consul ng

www.xitegroup.co.za 

Foundedin2006,webeganasanOccupationalHealthConsulting

Company. Todaywe have participated in more than the health

servicesprovisiontomanagementandadministrationofftheser-

vicecentres.WehaveparticipatedintheinvestmentofKPH,apri-

vatehospital in theNelspruitarea.Wehave carvedourniche in

corporate governance and responsible and sustainable invest-

mentmanagement.OurvisionofbeingaHealthCareInvestment

and OperationsManagement Company is progressingwellwith

About XiTe Group Holdings Companies 

XiTe Group Investment Philosophy!

At XiTe Group, we believe that Ethical Investments are not only nec-essary, but are Sustainable! We Subscribe to the highest level of Ethical Leadership!

We reserve the right to select business partners and clients, based on Ethical Considera ons and Corporate Governance Compliance!

Beyo

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www.xitegroup.co.za 

OurPortfolio

WeoperateexclusivelyintheHealthCareIndustry.Weonlyconsiderprojectsoutsideourcoresectoronlyifwehavesparecapacity.

HealthCareInvestments&Management.

HealthConsultingServices.

GeneralAdministrative&MarketingServices.

Information&TechnologyManagement

PropertyandInfrastructure

Learning,TrainingandFurtherEducation.

OurHealthConsultingServicesareprovidedunderthebrandofDrCaswellInc.

Our team of senior management professionals have a combined years of experience exceeding more than 60 years of clinical prac ce, and ten years of health services management. Through the shared services model, we create value for our partnered clients and ensure a compe ve and quality based opera onal environment .

NEW INVESTMENT OPPORTUNITY 

XiTe Group has unlocked an opportunity to par cipate in a new investment in Health Care infrastructure in the Mpuma-langa Province. For purposes of this document, the specific details of the Opportunity shall not be described in full. This is due to disclosures of confiden ality.

NOTE TO POTENTIAL INVESTORS 

We intend to make the full disclosure to those investors who will have shown interest in the opportunity. This interest can be expressed by visi ng our XiTe Group webpage, under In-vest and filling in the forms on the page. We have also made efforts to invite specific investors, who have responded for-mally and those, we have started a process of engagement.

INTENTIONS OF CONTENT OF THIS BROCHURE 

This brochure contains peripheral informa on that is geared to spark interest from specific ins tu ons and or individuals. It does not contain detailed financial nor strat-egy informa on, but has enough to spark a conversa on of intent. We as the XiTe Group will through our partners, en-gage the various interested par es to ensure that all due diligence queries are a ended to in full. We have entered into agreement of support with legal firm, a transac onal advisory firm, all in an a empt to bring this investment to a close. 

We would urge you to read through this document, under-stand it and send us a request for detailed informa on 

BACKGROUP TO THE XPH PROJECT

A blue-chip company owned hospital was licensed for 134 beds with the bed configura on skewed to-

wards adults. No ICU, High Care or Theatre units were a ached to the license. The only radiology service is 

x-rays and no CT or MRI modali es are available. The hospital operates as a clinic more than a hospital 

with less than 10% occupancy on a month on month basis. The hospital is located  no more than 10 km 

from the centre of town  with shu led services available to transport users. 

The hospital has direct immediate access to around 36 thousand community members who are covered in 

some form of medical aid. The hospital operates an outpa ent facility which processes more than 200 pa-

ents on a daily basis for various levels of services. The current Emergency Unit is not fully equipped to 

handle Priority cases but the physical infrastructure is present to allow for this expansion. 

The hospital was offered for acquisi on a er an efficiency improvement study was conducted in early 2018 

and the plan presented to the management team/owner. This efficiency improvement plan cons tute the 

core of the turnaround strategy. Progress has been made to date, which progress was to address some 

challenges with regards the opera ons and certain services provided. 

INTEREST OF ACQUISITION 

The seller is willing to dispose of this asset to XiTe Group and we have entered into exclusivity agreement 

for the period ending 2019 December 31. The asset will be transferred to XiTe Group upon conclusion of 

various provisions. We are conversant of the erosion of value and have made a provision for this to be 

addressed and for full opera onaliza on through efficiency drives  in order to rescue the asset from further 

deteriora on. 

We as XiTe Group have done our assessment of the unit and are convinced that with a proper strategy the 

asset will return to profitability as was the case at full opera ons  more than 10 years ago. As has been indi-

cated earlier, the detailed strategy of the turn around as well as value crea on going forward, are available 

to select investors due to strategic reasons. 

PROGRESS TO DATE

XiTe Group has undertaken the license reapplica on for the posi oning of the hospital to have the following: Theatre ; ICU and High Care; Day Beds; Maternity Unit and the beds reconfigured for op mal use. We have commis-sioned an architectural project to look at the structural re-configura on for purposes of capital outlay determina on.

Through engagements with the seller, a management plan is being put in place to ensure that value is arrested for decline and opera onal efficiencies are brought back.

PROPOSITION

We as XiTe Group are seeking investors to partner with in this project. We seek various levels of partners and are ne-go a ng to bring on board the following: Equity Partners (We aim to retain 51% of the stake in the investment); Fun-ders (preferably Equity Stake holders); Preferen al Share-holders as well as partners willing to u lize the hospital to enhance value and place the unit on a path of profitability. Doctors & other Allied Health Care providers are invited to par cipate ac vely in this venture.

ETHICAL INVESTMENTS

XiTe Group intends to enter into partnership with ethical investors within the governance provisions 

of King IV and guiding regula ons. The current South African landscape of unethical prac ces are  dis-

couraged in this deal as we want to create value for investors. We therefore reserve the right to con-

duct a due diligence on all private investors to ensure there is no burden to the investment. 

We aim to a ract groups of investors who will ensure that the hospital is properly supported and posi-

oned to be a challenger to the current services provider in the region. 

Vested Interest par es  

Equity Funders 

Private Investors 

CRUDE FINANCIAL INFORMATION

We a ach the crude financial informa on as an extract from the model to be fully made available to investors once the interest has been sparked and further engagements sought. The project will need in excess of R110m in funds. This is future looking and will be u lized as outlined herein.  

25-30% allocated to acquisi on costs. 

30-50% allocated to Property, Plant and Equipment Costs 

20-25% to be allocated to Opera onal Costs. 

We aim not to exceed a 60:40 Debt to Equity ra on but preferably lower debt. We will adjust accord-

ing to investor expecta ons of their required rate of return. 

STRUCTURE 

In order to achieve the turn around of the unit, there will have to be realignment of the structures. While this cons -tutes the Turn Around Strategy, it is common knowledge in the health care industry and thus does not cons tute privi-leged informa on and can be shared in comfort. Specific de-tails are le out.

Hospital Opera ons Company 

Property Company 

Pharmacy Company 

ER  / Doctors Company 

We aim to streamline services in an a empt to lower opera-

onal costs. 

THE COMPANIES 

CRUDE REVENUE PROJECTIONS

With the opera onal efficiencies improvement plan, we aim to have the unit be turned around within

the next 3 years. This will need firm commitment from all stakeholders in order to ensure there is con-

gruency towards the objec ve. Our strategy involves challenger strategies that will ensure there is de-

termina on and drive to achieve all opera onal objec ves within the first year of opera on.

THE NUMBERS AT A GLANCE We have made ease of reference by combining  in the table 

below, the current versus the future projected numbers to 

ensure there is comparison for the investor. Further drill 

down is available as outlined previously in this document. 

to be achieved  by end of year 2 in order for the hospital to reach its targets by 

year 3.  It is  worth no ng that these numbers are conserva ve es mates. It has 

been indicated that there will have to be opera onal efficiencies introduced. Thee 

have These below numbers are been outlined in brief.  

Ac vity  Current   Future Projec ons 

Regulated Services   R36 m  R40 m 

Theatre  R0.00  R12 m 

Day Pa ents  R24 m  R30 m 

ER Services  R0.00  R12 m 

Rehabilita ve (Physical)  R0.00  R12 m 

CURRENT STATUS 

The XiTe Group has thus far progressed on the restora on of bed  

reconfigura on and license update for the addi on of value crea ng 

services. Having succeeded in the  

We have specialists in the field of cardiothoracic , neurosurgery and 

neurology over and above the conven onal specialists, who have in-

dicated willingness to come and u lize the hospital.  

The conven onal specialists are Orthopaedic specialists, Internal Phy-

sicians, General Surgeons and Anesthesiologists. 

We have started with the realignment of the ER unit through the 

manning of the unit using Anasthesiology Diplomates due to the ex-

per se for acute resuscita on capabili es. 

Currently engaged investors include: 

Zenani Trust and Proper es 

Dzana Investments 

Doctor Groupings:  Local Vicinity. 

Private Investors 

INVESTORS WITH INTEREST

We have engaged private investors, doctor groups as well as property groups owned by individuals to get them to show interest. This has been done to ensure their curiosity is sa sfied. We have not received any signed commitment de-spite the indica ons of interest at all mes of engaging them. We thus urge you to show your commitment early in order to ensure that should there be oversubscrip on, you are not le out of this deal.

PROCEDURE FOR PRIVATE INVESTORS

We request all private investors to sign a non-disclosure agreement before we can share the details of

this opportunity. This is to be done through our legal representa ves who have been appointed for the

project. Legal costs associated with this is for the private investor as an individual. Our office will also be

in a posi on to handle the signing of the NDA should cost be a factor.

FINANCIAL COMMITMENT You have been sent this brochure to invite yourself as a private investor to par cipate in the investment.

We are looking forward to engaging with yourself over the next few weeks in order to conclude this

investment. We pride ourselves in the ethical investment prac ces.

We therefore request the following from yourself in order to conclude this process:

NDA.

Indica on of Interest.

Risk Appe te. How much investment are you willing to make.

Further informa on required for you to make the investment

Commitment to be bound by Our Ethical Investment Code & Corporate Governance compliance.

Your specific condi ons a ached to your investment.

Please note that all the above can be indicated on the online form which is found on our website

www.xitegroup.co.za under our Invest Page.

ADVISORS AND PARTIES  

We have partners on board who will be advising as much as is possi-

ble on this deal. 

PJD Legal: Lawfirms 

Sizwe, Ntsaluba & Gobodo (Nelspruit): Transac on Advisors 

XiTe Group Administrators: Administra on  

 

INVESTORS WITH INTEREST

We aim to a ract investors at various stages of the deal. With this in mind, we have taken risks and expect the risks to pay off at some point in the future. It is for this reason that we have put discount structures for the private inves-tors who come on board much earlier. The cutoff for the ear-ly investor is Q1 2019.

We also have put a discount structure for investors with a vested interest. This is to ensure that the deal is a rac ve to all.

We an cipate a discount not exceeding 33% of the ini al price for these.

SUMMARY You have been sent this brochure to invite yourself as a private investor to par cipate in the investment.

We are looking forward to engaging with yourself over the next few weeks in order to conclude this

investment. We pride ourselves in the ethical investment prac ces.

We therefore request the following from yourself in order to conclude this process:

NDA.

Indica on of Interest.

Risk Appe te. How much investment are you willing to make.

Further informa on required for you to make the investment

Commitment to be bound by Our Ethical Investment Code & Corporate Governance compliance.

Your specific condi ons a ached to your investment.

Please note that all the above can be indicated on the online form which is found on our website

www.xitegroup.co.za under our Invest Page.

Beyond Possibili es! Suite 46, Plaza 10 Building 52 Brown Street,

NELSPRUIT 1200

Tel: 013 752 2012 Mobile: 063 746 2196 Email: admin@xitegroup.co.za Web: www.xitegroup.co.za

XiTe Group Holdings