Mediclinic International agreed to the latest offer from a consortium led by billionaire Johann Rupert, valuing the South African hospital operator at 3.7 billion pounds ($4.5 billion).
Remgro, Rupert’s investment group and already Mediclinic’s biggest shareholder is partnering with MSC Mediterranean Shipping Company SA to pay 504 pence a share for the stock it doesn’t already own, according to a statement issued on Thursday. This was the fourth approach, including a 463 pence bid that was rejected in June 2022.
Mediclinic shares gained 3.4% to 501 pence as of 13:41 in London, having already climbed 56% this year amid the takeover battle. The company has several healthcare facilities across the globe, including those in Switzerland and the UAE as well as South Africa, where it has a dual listing.
The deal however still needs approval from shareholders representing 75% of votes cast at a general meeting, and “pressure from minorities for improved terms is a real possibility,” analysts at financial group Cowen said in a note.
The proposed valuation is less than Mediclinic’s 2017 offer to buy out Spire Healthcare Group Plc, a UK private hospital operator it owns partially, which was ultimately rejected, they said.
Remgro, a long-term Mediclinic investor, has a 45% stake in the group. The Public Investment Corp, Africa’s biggest money manager, holds about 11%.
The Stellenbosch-based company has been shaking up its portfolio in recent months, increasing the amount of unlisted assets and selling a 30% stake in liquor distributor Distell Group Holdings Ltd, South Africa’s largest wine and spirits maker, to Heineken NV.
Johann Rupert, 72, who has a net worth of almost $10 billion, according to the Bloomberg Billionaires Index, is South Africa’s richest citizen.
The deal represents another expansion for MSC, which has grown in stature after cargo transport boomed during the Covid-19 pandemic. The container group also bought the African transport and logistics business of Bollore SA for $6.3 billion.