The Capital Quest | South Africa’s Remgro, MSC value Mediclinic at $4.5 bn in take-private offer

Johannesburg-listed diversified investment holding company Remgro is partnering Switzerland-headquartered Mediterranean Shipping Company (MSC) to take private hospital chain operator Mediclinic in a deal that values it at £3.7 billion ($4.5 billion).

Mediclinic was spawned by the Remgro group in South Africa in 1983. Today the Mediclinic group of companies operates 74 hospitals, five sub-acute hospitals, two mental health facilities, 20 day-care clinics and 22 outpatient clinics in South Africa, Namibia, Switzerland and the Middle East.

In addition, it holds a 29.7% stake in Spire Healthcare Group plc, a leading private healthcare group based in the UK and listed on the London Stock Exchange.

Remgro, which was originally established in the 1940s by the late AE Rupert, has investments across various industries including those in healthcare, consumer products, financial services, infrastructure, industrial and media industries. It owns 44.56% stake in Mediclinic.

Remgro will roll it over to a special purpose vehicle established for the Mediclinic deal where MSC will own the other 50%.

It will pay £201 million to buy additional 5.44% indirect stake in Mediclinic while MSC will bring in the remaining £1.8 billion required for the transaction.

The acquirers said they believe: “Private ownership will better support Mediclinic by providing greater flexibility to capitalise on growth opportunities in existing and new markets, in a more agile manner.”

For the year ended March 31, 2022, Mediclinic’s net asset value amounted to £3.1 billion with headline earnings of £140 million.

Under the terms of the offer, Mediclinic shareholders owning 55.44% stake shall be entitled to receive for each Mediclinic share 504 pence in cash. They shall also be entitled to receive the final dividend of 3 pence per Mediclinic share declared by Mediclinic three months back.

Mediclinic shares that had touched their all-time high six years ago has been on a downward journey since then. After hitting a lot of around 251 pence two years ago as the pandemic struck the business, it has doubled since then and in particular has rocketed 65% since last November.


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Publish date : 2022-08-06 05:39:59

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