Saturday, 2 July, 2022
HomeNews UpdateMediclinic board turns down cash bid to buy it out

Mediclinic board turns down cash bid to buy it out

The Mediclinic hospital group has rejected a cash offer by a Remgro consortium to buy it out. The board said the offer “significantly undervalued Mediclinic and its future prospects”.

Three weeks ago, Remgro Limited, an investment holding company which owns a 45% share of Mediclinic already, and the Mediterranean Shipping Company, acting as a 50-50 consortium, presented a cash offer to Mediclinic of 463 pence a share, roughly £3.4bn (or R66bn).

While Mediclinic turned down the offer, according to Simply Wall St, the hospital group is currently 27.4% undervalued, trading at £4.25 rather than Simply Wall St’s fair value estimate of £5.85.

Mediclinic’s earnings are forecast to grow 14% year on year, and it posted group revenue of £3.2bn for the year to March 2022.

The hospital group operates in Switzerland (47% of revenue), southern Africa (28% of revenue) and the United Arab Emirates (25% of revenue).

Anthony Clark, an analyst at Smalltalkdaily Research, said he would not be surprised to see Remgro returning with a higher offer to Mediclinic. “If they do acquire Mediclinic, that would take a significant proportion of their cash resources."

 

Daily Maverick article – Mediclinic board rejects Remgro consortium’s offer to scoop the ‘prize’ (Open access)

 

See more from MedicalBrief archives:

 

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

 

ConCourt blocks Mediclinic in North West medical merger

 

Mediclinic may net R5.6bn from stake in UK’s Spire

 

Pandemic uncertainty sees Mediclinic scrap its dividend

 

 

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