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Looking at the medical sector—Mediclinic International has agreed to the latest in a series of offers from a consortium led by South African billionaire, Johann Rupert. The consortium consists of Remgro Limited and MSC Mediterranean Shipping Company SA.
In a joint statement released by the consortium and Mediclinic International on Thursday, 4 August 2022, it was stated that an agreement was finally reached in terms of the recommended cash offer to acquire Mediclinic International.
According to the statement issued, the large hospital operator is valued at approximately £3.7 billion, and an implied enterprise value of approximately £6.1 billion (+-R122 727,273,171,0)
It should be noted that Rupert’s investment company, Remgro, is already the hospital group’s largest shareholder, owning over 44% of the company’s shares. With the latest announcement and by partnering with MSC Mediterranean Shipping Company SA, it will now be paying 504 pence (R101) per share for the new stocks.
However, while Mediclinic International has accepted the £3.7 billion bid, the deal still needs official approval from shareholders representing 75% of votes cast at a general meeting.
Commenting on the Acquisition, Chair of Mediclinic, Inge 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. 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.”
The CEO of Remgro, Jannie Durand added that he was delighted that Remgro was participating in this transaction, which is fully aligned with their strategy of prioritising their ownership of structurally attractive, unlisted assets.
“Since its founding, Remgro has been a long-standing and supportive shareholder of Mediclinic. We are proud of what the business has achieved over that period and look forward to continuing our support, alongside our partner SAS, as the business transitions to the next phase of its evolution under stable, long-term ownership. 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.”
The Group President of MSC, Diego Aponte said, “We are delighted to be partnering with Remgro on the acquisition of Mediclinic, a business we have great admiration for. MSC is very well placed to provide long-term capital, as well as our insight and experience from operating a global business, in order 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.”
With progression happening across the private medical sector, what are your thoughts on the above?
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