South African investment holding company AfroCentric announced that it had, via its subsidiary ACT Healthcare Assets, reached a deal to acquire 74 percent in pharmaceutical company Activo Health Proprietary Limited for 588 million rands ($40.4 million).

AfroCentric acquired a 26 percent interest in Activo and a call option for a further 74 percent interest in 2015. The sellers are WAD, a 16 percent shareholder in and related party to AfroCentric, which holds a 51.6 percent interest in Activo and Claassen and Martin, who each hold an 11.2 percent interest in Activo.

The acquisition of absolute control of Activo is consistent with AfroCentric’s growth objectives through expanding its activity and application in its pharmaceutical supply and its medication distribution network.

AfroCentric said the effective date of the acquisition, subject to the timeous fulfilment of conditions, was expected to be January 1, 2019.