Home » Mediclinic gains over $690 million four weeks after Johann Rupert’s Remgro launches takeover bid

Mediclinic gains over $690 million four weeks after Johann Rupert’s Remgro launches takeover bid

by Yusuf Abdulfatai
Johann Rupert

South Africa’s leading hospital operator Mediclinic has seen its market capitalization rise by more than $630 million in the past four weeks, as investors remain optimistic about the takeover bid launched nearly one month ago by Remgro Ltd., an investment holding led by South African billionaire Johann Rupert and MSC Mediterranean Shipping Company (MSC).

Mediclinic International is a private hospital group with locations in South Africa, Namibia, Switzerland, and the UAE. The group is South Africa’s largest hospital operator.

As of press time on July 9, shares in the leading hospital operator were trading at R94.23 ($5.59), up 3.1 percent from their opening price this week on Monday, as investors continued to swoon over the company’s stock.

Since Rupert’s investment firm Remgro and MSC announced plans to execute a complete takeover of Mediclinic nearly one month ago, shares in the South African hospital operator have increased from R79.8 ($4.73) to R94.23 ($5.59), representing an 18.1-percent gain for shareholders.

The company’s market capitalization on the Johannesburg Stock Exchange has risen by R10.65 billion ($631.7 million) as a result of the double-digit surge in its shares, from R58.82 billion ($3.49 billion) to R69.24 billion ($4.12 billion).

Similarly, Remgro’s 44.6-percent stake in Mediclinc has increased in value by R4.75 billion ($281.5 million), from R26.2 billion ($1.55 billion) to R30.95 billion ($1.84 billion).

The Remgro-MSC consortium has recently begun reviewing plans to launch a higher takeover bid for Mediclinic, just weeks after the investors launched a £3.4 billion ($4.3 billion) bid, which was rejected by the hospital operator on the grounds that it “seriously undervalued Mediclinic and its future prospects.”

The initial bid, which includes a dividend payout, is less than half of what the shares were trading for five years ago.

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