After turning down a previous bid, Mediclinic has agreed to a £3.7 billion buyout by a consortium consisting of investment group Remgro Limited and Mediterranean Shipping Company (MSC).
The buyout will give Remgro and MSC, through a jointly owned subsidiary, a 50/50 stake in the healthcare company.
The offer still has to be cleared by 75% of Mediclinic’s shareholders (Remgro is already a shareholder), but according to the The Daily Maverick, Mediclinic’s CFO, Gert Hattingh, the company’s directors consider the terms of the sale to be fair and reasonable. In addition, regulatory approval must be granted in South Africa, Namibia, Switzerland and Cyprus for the acquisition to proceed.
The current bid is offering 504 pence per share, a 35% increase on the first rejected offer, according to MoneyWeb. With the £3.7 billion buyout, Mediclinic has an implied enterprise value of roughly £6.1 billion.
Mediclinic operates 74 hospitals as of March this year, with 50 hospitals in Southern Africa (three of which are in Namibia), 17 hospitals in Switzerland, seven in the UAE and a 200-bed hospital due to open in Saudi Arabia.
The 72-year-old Johann Rupert who leads Remgro and has a 7% ownership, is South Africa’s richest person, with a personal fortune of $8.8bn, according to the most recent estimate by Forbes.
Commenting on the acquisition, Dame Inga Beale, Chair of Mediclinic, said: “The recommended offer represents a near-term value realisation for Mediclinic shareholders at an attractive premium.
“Over 39 years, Mediclinic has developed into the leading international healthcare services group it is today. During this time, Remgro has remained a supportive long-term shareholder. Together with SAS, the Consortium’s resources will put Mediclinic in a strong position to continue to serve patients through our broad range of high-quality healthcare services.”
