Mediclinic bosses U-turn on rejection of billion-pound takeover by consortium
The board of private hospital operator Mediclinic have U-turned on their rejection of a takeover approach from a consortium including billionaire luxury goods tycoon Johann Rupert.
Bosses at the London-listed firm said today that having weighed up the realities of current macro-economic conditions, “the near-term value realisation of the latest proposal provides Mediclinic’s shareholders an attractive alternative to the group continuing as an independent company” and that it will recommend the offer to shareholders.
The consortium consists of South African investment firm Remgro, which owns a 45 per cent stake in Mediclinic, and MSC Mediterranean Shipping Company SA, acting through its wholly owned subsidiary, SAS Shipping Agencies Services Sàrl.
The latest cash offer, one of four unsolicited propositions since late May, consists of 504p per share for stock not already owned by Remgro – which represents a 23 per cent premium on its share price on 7 June.
Investors were seemingly keen on the move, after shares jumped 7.5 per cent to 475.4p by mid-afternoon.
The board previously unanimously voted against a £3.4bn offer of 463p per share at the beginning of last month, concluding that the bid “significantly undervalued” the healthcare group and its “future prospects”.
While bosses are minded to accept the bid, Remgro will now need to announce a firm intention to make an offer for Mediclinic before 4 August. However, there is no certainty that a concrete offer will emerge.