A consortium led by Remgro has reached an agreement with JSE-listed personal hospital large Mediclinic International to buy it out in a money provide, which represents round a 50% premium to the group’s volume-weighted common share value for the six months to 25 May 2022.
Confirming the deal in a Sens on Thursday morning, the hospital group mentioned the boards of Manta Bidco Limited (Bidco), Remgro Limited, SAS Shipping Agencies Services (SAS) and Mediclinic (excluding the Remgro consultant) “are pleased to announce that 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”.
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This excludes Mediclinic shares that Remgro subsidiaries already personal, which represents a stake of round 44.56%.
Bidco is a newly fashioned firm owned by the joint offerors, Remgro and SAS – which is a completely owned subsidiary of MSC Mediterranean Shipping Company SA.
“The acquisition values the entire issued and to be issued ordinary share capital of Mediclinic at approximately £3.7 billion (around R75.33 billion at the current rand/British pound exchange rate) and an implied enterprise value of approximately £6.1 billion [R124.2 billion],” Mediclinic famous in its announcement.
“Under the terms of the acquisition, Scheme Shareholders shall be entitled to receive 504 pence in cash for each Mediclinic Share held [acquisition price],” it added.
“[This represents] a premium of approximately 50% to the volume-weighted average price per Mediclinic Share of 337 pence for the 6 months to 25 May 2022 [being the day prior to the date on which the initial proposal was made],” the group mentioned.
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It additional pointed out that the provide additionally represents “a premium of approximately 35% to the closing price per Mediclinic share of 373 pence on 25 May 2022 (being the day prior to the date on which the initial proposal was made)” and “a premium of approximately 23% to the closing price per Mediclinic share of 411 pence on 7 June 2022 (being the day prior to the market speculation of an approach).”
In phrases of the deal, Mediclinic shareholders may even be entitled to obtain the ultimate dividend of three pence per Mediclinic share declared by the group on 25 May 2022 and authorised on the Mediclinic annual normal assembly on 28 July 2022 (the agreed dividend).
Commenting on the deal, Dame Inga Beale, chair of Mediclinic, mentioned: “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 famous.
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“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,” Beale added.
“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,” mentioned Remgro CEO Jannie Durand.
“Since its founding, Remgro has been a long-standing and supportive shareholder of Mediclinic. We are happy with what the enterprise has achieved over that interval and look ahead to persevering with our assist, alongside our associate SAS, because the enterprise transitions to the following section of its evolution beneath secure, long-term possession.
“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,” added.
Also commenting on the acquisition, Diego Aponte, group president of MSC, mentioned: “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.”