Home » Johann Rupert’s Remgro, MSC reach agreement on Mediclinic acquisition terms

Johann Rupert’s Remgro, MSC reach agreement on Mediclinic acquisition terms

by Yusuf Abdulfatai
Johann Rupert

Multinational private hospital group Mediclinic International and a consortium led by Remgro Limited have finally reached an agreement on terms after more than two months of negotiations on the strategic acquisition and buyout of Mediclinic’s outstanding shares.

Remgro is a South African investment holding led by billionaire Johann Rupert.

Mediclinic is a private hospital group based in South Africa, Namibia, Switzerland, and the United Arab Emirates. Rupert’s Remgro owns 44.6 percent of the group, which is South Africa’s largest hospital operator.

According to a disclosure issued on Thursday, a consortium consisting of Manta Bidco Limited, Remgro, and MSC Mediterranean Shipping Company (MSC) has agreed on the terms of a recommended cash offer to acquire Mediclinic.

The news comes nearly three months after Remgro and MSC announced plans to finalize the full takeover of Mediclinic.

The takeover values the group’s entire issued and to be issued ordinary share capital at about £3.7 billion ($4.48 billion), with an implied enterprise value of around £6.1 billion ($7.4 billion).

The deal values the South African private hospital group at roughly a 50-percent premium to the volume-weighted average price per share of £3.37 ($4.1) for the six months ending May 25, the day before the proposal was made.

Under the terms of the agreement, Mediclinic shareholders will also be entitled to the final dividend of £0.03 ($0.036) per Mediclinic share declared by the group on May 25 and approved at the Mediclinic annual general meeting on July 28.

“I am delighted that Remgro is participating in this transaction, which is fully aligned with our strategy of prioritizing our ownership of structurally attractive, unlisted assets,” Remgro CEO Jannie Durand said.

He explained that Remgro has been a supportive shareholder of Mediclinic since its inception. Under the consortium’s stewardship, he said, Mediclinic will be well-positioned to execute on its strategy and make the necessary investments to realize the complete potential of the business.

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