MDMG.L Regulatory News (MDMG)

MD Medical Group Announces Long-Term Management Incentive Plan

24 April 2014, Moscow - MD Medical Group Investments Plc ("MD Medical Group", "MDMG", the "Group" or the "Company"- LSE: MDMG), Russia's leading provider of private women's and children's health care, announces that a long-term share incentive plan (the "Plan") is expected to be created for senior management and key personnel of the Group.

The Company expects to allocate and purchase up to 230,000 GDRs ("GDRs" or the "shares") on the open market, representing under 1% of the Company's issued share capital. The share purchase is expected to take place during the period May to October 2014. 

Commenting on the Plan, MDMG Chairman Mark Kurtser, said: 

"This long-term incentive plan is being conducted at a time when we believe our shares to be significantly undervalued. The plan, through the purchase of GDRs, will help to achieve three key aims: to align more directly management interests with those of our shareholders; to increase management's motivation to maximise shareholder value over the long-term; and also to serve as a mechanism to reward and build loyalty from members of the team who we believe to have contributed most to the Company's value."

The Plan is aimed at increasing focus on shareholder value, based on the achievement of Key Performance Indicators ("KPIs"), which include return on equity ("ROE") and earnings per share ("EPS"), as well as reaching the Company's target GDR price at the end of the Plan.

The proposed Plan will last for three years and will include up to 30 employees of the Group, who play a significant role in value creation at the Company.

The share purchase will have regard for FCA rules and regulations. In addition, implementation of the Plan will depend on market conditions and will proceed only if it is believed by the Board of Directors to be in the best economic interest of the Company to do so.

This announcement contains summary information only.

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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 17 modern healthcare facilities, including 2 hospitals and 15 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk and Yaroslavl. In addition, 3 franchised outpatient clinics operate in Kyiv, Ukraine.

The Company's main medical facilities are the Perinatal Medical Center (PMC), a 250-bed medical centre, which opened its doors in 2006, and Lapino hospital, a 182-bed medical centre, which opened at the end of 2012. In 2013, there were 3,816 deliveries in PMC and Lapino. The number of outpatient treatments for 2013 in PMC and the Company's outpatient clinics totalled 627,247. In March 2013, the Company began construction of its third hospital in Ufa. In April 2013 MD Medical Group completed the acquisition of the IDK Medical Company ("IDK"), a network of women's and children's health clinics located in the Russian region of Samara. In May 2013, the Company acquired Mother&Child clinic in Irkutsk, which had previously operated through a franchise agreement with MD Medical Group. The same month the Company completed a large-scale modernisation project of its Mother & Child Health Clinic in Moscow. In December 2013, a new outpatient clinic was opened in Yaroslavl which became the first healthcare facility in the region to provide IVF services.

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.