Mediclinic’s board has accepted an improved offer by a Remgro and MSC Shipping consortium company to buy out the shares in international private healthcare group Mediclinic that Remgro does not already own and delisted the privately owned international healthcare group..
Mediclinic’s board had on June 9 rejected the consortium’s offer of 463 pence a share (including a final dividend of 3 pence per share) on the basis it undervalued Mediclinic. However, the board said the latest cash offer of 504 pence represented about a 50 percent premium to Mediclinic’s average share price for the six months to May 25, 2022.
“Under the stewardship of the consortium, Mediclinic will be well-positioned to execute on its strategy and undertake the investment required to realise the full potential of the business,” said Remgro CEO Jannie Durand.
Mediclinic said in a statement yesterday its board and those of the bidding consortia, “are pleased to announce they have reached agreement on the terms of a recommended cash offer to be made by Bidco to acquire the entire issued and to be issued ordinary share capital of Mediclinic”.
Remgro already owns around 44.56 of Mediclinic and is its biggest shareholder.
“The acquisition values the entire share capital of Mediclinic at about £3.7 billion (around R75.33bn), and an implied enterprise value of some £6.1bn (R124.2bn), Mediclinic said in a statement.
Mediclinic’s shareholders will receive 504 pence in cash for each Mediclinic share.
The average volume-weighted average price per Mediclinic share was 337 pence for the 6 months to May 22,” the group said.
Mediclinic said the offer also represented “a premium of approximately 35 percent to the closing price per Mediclinic share of 373 pence on May 25, the day prior to the date on which the initial proposal was made.
Mediclinic shareholders will also receive the final dividend of 3 pence per Mediclinic share declared by the group on May 25.
Medclinic chairman Dame Inga Beale 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,” she said.
“I am delighted that Remgro is participating in this transaction, which is fully aligned with our strategy of prioritising our ownership of structurally attractive, unlisted assets,” said Remgro CEO Jannie Durand.
Diego Aponte, group president of MSC, said: “MSC is well placed to provide long-term capital, as well as our insight and experience from operating a global business, to support the strategic ambitions of the Mediclinic management team. We believe that, alongside Remgro, our ownership will provide Mediclinic with significant resources to the benefit of all of Mediclinic’s stakeholders, including in particular its patients, employees, doctors and host governments.”
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