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ACQUISITION OF MOTHER & CHILD CLINIC IN IRKUTSK

15 May 2013 07:00

RNS Number : 7264E
MD Medical Group Investments PLC
15 May 2013
 



 

 

 

MD MEDICAL GROUP ACQUIRES MOTHER & CHILD CLINIC IN IRKUTSK

15 May 2013 - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE: MDMG), Russia's leading provider of private women's and children's healthcare, announces that it has completed the acquisition of 80% of Mother & Child Irkutsk ("M&C Irkutsk"), a specialist outpatient clinic providing a range of women's health services in the Russian region of Irkutsk. Until now, M&C Irkutsk has operated through a franchise agreement with MDMG.

 

The acquisition was for a cash consideration of USD 4.8 mln for 80% of the outstanding share capital of M&C Irkutsk.

 

Established in 2007, Mother & Child Irkutsk is the only private reproduction centre in the Irkutsk region of Russia, specializing in IVF and gynecology. In 2012, Mother & Child Irkutsk handled 452 IVF cycles and 15,718 outpatient treatments, representing approximately 12% and 4% of MDMG's respective indicators.

 

Commenting on the acquisition, CEO of MD Medical Group Elena Mladova, said:

 

"We continue to execute on our strategy of strengthening our position in Russia's largest and fastest growing regions. Mother & Child Irkutsk is an excellent fit for us, given its focus on IVF and gynaecology and the similarity of its business model with other clinics in our network. We look forward to the effective integration of M&C Irkutsk into the group, as we expand further our presence in the region."

 

For further details on the transaction please refer to the management presentation on the Company's web site at www.mcclinics.com/investors/presentations/

 

Investors

Maxim Novikov, Head of Investor Relations

Tel: +7 495 331 16 50

ir@mospmc.ru

MediaM:CommunicationsTom Blackwell / Anna Yarmarkova – MoscowSarah Macleod / Hollie Vile – London

Tel: +7 495 363 2846Tel: +44 20 7920 2300mdmg@mcomgroup.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 ten modern healthcare facilities, including two hospitals and eight outpatient clinics in Moscow, St. Petersburg, Ufa and Perm. In addition, two franchised outpatient clinics operate in Kyiv and one franchised outpatient clinic in Irkutsk.

 

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 2012, there were 3,253 deliveries in PMC and Lapino. The number of outpatient treatments for 2012 in PMC and the Company's outpatient clinics totalled 446,407. 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, a network of women's and children's health clinics located in the Russian region of Samara ("IDK").

 

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.

 

Key statistics for Irkutsk1

 

Ø Total estimated figure for the population of Irkutsk region is 2.4 million for 2013

Ø Around 30% of the region's urban population lives in Irkutsk - the region's largest city

Ø Irkutsk region is 20th in Russia by GDP and 21st by income per-capita

Ø Irkutsk region is 15th Russia in terms of birth rate - 19.5% higher than the Russian Federation average rate

Ø Around 36,000 deliveries per annum in Irkutsk region

Ø Number of newborns in Irkutsk increased by 5.3% in 2012 compared to 2011

 

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.

 

 

 

1 According to Federal State Statistics Service

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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