5 Sep 2016 08:17
MD MEDICAL GROUP TO BUY A CLINIC IN TYUMEN
5 September 2016, Moscow - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE:MDMG), a leading Russian private healthcare provider, today announces the proposed acquisition of 100% of shares in NEO-Clinic, a multi-disciplinary clinic located in the centre of Tyumen.
NEO-Clinic, which opened in 2003, will become the Group's first facility in the Tyumen region. Its offering focuses on high-tech medical services in line with MDMG's key service areas, including IVF, OBGYN, paediatrics and stem cell bank. NEO-Clinic also offers services including gynaecological, plastic and general surgery, otolaryngology, endocrinology, cosmetology and dermatology, which are already successfully offered at the Group's existing hospitals.
The clinic has an area of 3,602 sq m, and comprises 19 doctor's offices, a nine-bed in-patient facility and two state-of-the-art operating rooms.
The Company expects to complete the transaction in October 2016, subject to approval by the Federal Antimonopoly Service. NEO-Clinic has an estimated value of RUB 140 mln. The acquisition will be fully funded from MDMG's own funds.
MDMG in July 2016 signed a Memorandum of Understanding with the Tyumen region government. The company plans to start construction of a new 15,000 sq m multi-disciplinary hospital in Tyumen in 2017.
Mark Kurtser, CEO of MDMG, said:
"We are continuing to pursue our strategy focused on regional development, entering those regions of Russia which are the most attractive for our business and carefully selecting the assets where we see the highest growth potential.
"NEO-Clinic is a leader in the Tyumen region - one of Russia's highest-income regions, and which also benefits from high birth rates - and we plan to grow its business rapidly. In particular, we will adopt advanced world-class technologies, improve the level of medical services in line with the Group's standards, and introduce our efficient management team. These measures will enable us to strengthen our presence in the region.
"NEO-Clinic will be an excellent addition to our 30 medical facilities in Russia. The clinic's services - OBGYN and paediatrics - are in line with our traditional areas of focus. The clinic also offers a number of other high-margin services, and this experience will be helpful for us in anticipation of the launch of construction of our new multidisciplinary hospital in Tyumen."
About the Tyumen region
The Tyumen region has the population of 3.6 million, over 80% of which live in cities. Approximately 720,000 people live in Tyumen - the region's largest city and administrative centre. The region benefits from high birth rates - more than 60,000 children are born in the region annually. In 2015 there were 16.9 births per thousand inhabitants, placing Tyumen among the top 10 results for Russia's regions.
Further information on NEO-Clinic is available on the Group's website: http://www.mcclinics.com/presentations/.
For further information please contact:
Investors | Media |
Elena Romanova MD Medical Group Investments Plc Tel: +7 495 331 4120e.romanova@mcclinics.ru | EMTom Blackwell: +7 919 102 9064 Sergii Pershyn: +1 929 855 8188 MDMG@em-comms.com |
About MD Medical Group
MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 30 modern healthcare facilities, including 4 hospitals and 26 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk, Novosibirsk, Irkutsk, Yaroslavl, Ryazan, Kostroma, Novokuznetsk, Krasnoyarsk, Omsk, and Barnaul.
The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.
Forward-Looking Statements:
This press release contains forward looking statements, which are based on the Company's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.
No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.