Remgro Led Consortium ‘Bidco’ Acquires Mediclinic International
Remgro Led Consortium ‘Bidco’ Acquires Mediclinic International. Remgro is pleased to announce that the boards of Bidco, Remgro, SAS and Mediclinic excluding the Remgro appointed board members have reached agreement on the terms of a recommended cash offer by Bidco to acquire the entire issued and to be issued ordinary share capital of Mediclinic for approximately$4.49 billion.
Mediclinic was founded by the Remgro group in South Africa. It commissioned Dr Edwin Hertzog to undertake a feasibility study on private hospital provision in the Western Cape. His conclusive researchresulted in the formation of Mediclinic in 1983. Dr Hertzog led Mediclinic for 37 years until 2020, when he stepped down as non-executive chairman. Today the Mediclinic group of companies (“Group”)operates 74 hospitals, five sub-acute hospitals, two mental health facilities, 20 day case clinics and22 outpatient clinics in South Africa, Namibia, Switzerland and the Middle East. In addition, the Group holds a 29.7 per cent. interest in Spire Healthcare Group plc, a leading private healthcare group basedin the UK and listed on the London Stock Exchange. Remgro has been a longstanding and supportive shareholder in Mediclinic’s 39 year history, which includes its geographic expansion into Switzerlandand the Middle East, and this support has been instrumental to the success of the business.
Remgro is an investment holding company, listed on the JSE, which was originally established in the1940’s by the late Dr. AE Rupert. Under the guidance of the Rupert family, its investment portfolio hasevolved substantially over time and today includes investments across various industries. Its investments are mainly in the healthcare, consumer products, financial services, infrastructure, industrial and media industries. During its history, Remgro has forged many strategic partnerships to drive superior returns for its shareholders through sustainable dividends and capital growth. Remgro has high regard for Mediclinic’s management and operations and wishes to support its long-term growth ambition to further develop existing operations and expand into new geographies. Remgro believes evolution in Mediclinic’s ownership structure towards a long-term, sustainable construct, alongside aclosely aligned partner, will be critical in realising its full potential.
Remgro (acting through the Relevant Remgro Subsidiaries) and MSC (acting through its wholly-ownedsubsidiary SAS) are joint offerors with respect to the Offer.
Remgro recognises the significant benefits of a partner with a shared long-term investment horizon, with the financial resources available to support the ongoing investment in the business to maintain itsleading market positions. MSC, in its position as a leading container shipping company and private cruise operator, brings extensive experience in operating a global business and the Consortium believes Mediclinic will be able to leverage both Consortium partners’ expertise as it seeks to continue to grow and expand its geographical footprint. Remgro and MSC therefore believe that private ownership, under the Consortium’s stewardship, will significantly benefit all stakeholders, including Mediclinic’s patients, employees, doctors, host governments and wider Southern African, Swiss and Middle Eastern stakeholders.
