(Alliance News) - Mediclinic International PLC announced on Thursday it had accepted a sweetened offer from a consortium led by the Johannesburg-listed investment firm Remgro Ltd.
SAS Shipping Agencies Services Sarl is a consortium comprising Remgro and MSC Mediterranean Shipping Co SA. Remgro holds a 45% stake in Mediclinic.
The consortium revised its offer to 504 pence in cash for each Mediclinic share held, up 9.5% from 460p offered in May. Mediclinic rebuffed this initial takeover bid.
Shares in Mediclinic were 2.0% stronger at 499.60 pence each in London on Thursday morning. The shares were 2.7% higher in Johannesburg at ZAR101.36.
The proposed acquisition values Mediclinic at about GBP3.7 billion, representing a premium of around 50% to the volume-weighted average price per Mediclinic share of 337p for six months to May 25. On an enterprise value basis, including debt, it values it at GBP6.1 billion.
The proposed deal is subject to shareholder and regulatory approvals.
Mediclinic, which received advice from Morgan Stanley and UBS, considered the fresh offer as "fair and reasonable".
The Stellenbosch-based private hospitals operator intends to recommend unanimously this new proposal at the general meeting.
Mediclinic Chair Dame Inga Beale said the recommended offer represented a near-term value realisation for Mediclinic shareholders at an attractive premium.
"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 said.
Commenting on the deal, Remgro Chief Executive Jannie Durand said that 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.
MSC President Diego Aponte said: "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."
Remgro stock rose by 0.6% to ZAR138.30 in Johannesburg.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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