Tuesday, 25 June, 2024
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Mediclinic and Remgro reach agreement on buyout offer

Mediclinic, South Africa’s most valuable hospital group, has reached an agreement with Remgro, its biggest shareholder, on a buyout offer that values its shares at £3.7bn (R75.3bn).

Mediclinic’s board unanimously backs the £5.04 per share offer, made by a consortium including Remgro and shipping company MSC, which offered a premium of 35% to the hospital operator’s shares on 25 May, when an initial proposal was made.

Business Live reports that shareholders will now receive a circular and then vote on the offer, which has also won the approval of independent advisers Morgan Stanley and UBS. The transaction is expected to be completed in the first three months of 2023.

Mediclinic, also listed in London, runs a network of private hospitals in Switzerland, the Middle East and Southern Africa, and the initial offer had valued it at about £3.41bn, while the latest is the fourth one that was made.

In early trade on Thursday last wek, Mediclinic’s shares were up 1.47% to R100, reaching that psychologically important mark for the first time in just more than four years. The shares have risen 47% so far in 2022, and by 38% since May 25.

Remgro, the investment holding company chaired by Johann Rupert, has 44.56% of Mediclinic and is looking for a 50-50 partnership with MSC.

Mediclinic’s operations include 74 hospitals, five subacute hospitals, two mental health facilities, 20 day-case clinics and 20 outpatient clinics. The Swiss operations, which account for almost half of group revenue, include 17 hospitals and four day-case clinics, while its Southern Africa operations include 50 hospitals, three of which are in Namibia.

The group has seven hospitals in the United Arab Emirates, plus two day-case clinics and 20 outpatient clinics.


Business Live article – Mediclinic and Remgro agree on terms for £3.7bn buyout offer (Open access)


See more from MedicalBrief archives:


Johann Rupert group in Mediclinic takeover bid


Mediclinic board turns down cash bid to buy it out


Mediclinic rebounds after pandemic causes profits' drop in first-half




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