Johannesburg - Mediclinic said on Tuesday that the employee component of its black economic empowerment transaction had been an exceptional success, with more than R1.4 billion distributed among eligible employees.
In the deal, struck in December 2005, Mediclinic employees as well as strategic black partners were introduced as shareholders of around 15 percent of the company's shares.
Approximately 15.8 million ordinary shares, or 4 percent of the company's shares, at the market value of R18.40 per shares, were put into two employee share trusts for the benefit of about 10 927 participating employees, of which 52 percent were black and 89 percent were women.
Employees were subject to lock-in periods, the first of which ended on December 31, 2015, when participants could take transfer of their shares or dispose of all or some of them.
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Because of the combination of Mediclinic and Al Noor Hospital Group, announced in October last year, and specifically the issue of new Al Noor shares to Mediclinic shareholders, it was agreed to bring forward the vesting date of the remaining allocations.
On January 28, an accelerated book-build offering of 4 million Mediclinic shares, the majority of the remaining shares held by the trusts, was launched for the benefit of participating employees.
Mediclinic said the book-build was considerably oversubscribed.
All the shares were placed with qualifying institutional investors at R119 per share, representing a discount of 2.3 percent on the closing price on January 27, generating gross proceeds of R476.16 million for the beneficiaries of the trusts.
AFRICAN NEWS AGENCY