Mediclinic’s independent board has approved Remgro’s fourth takeover offer of 504 pence per share.
Mediclinic’s board has given its support to Remgro’s fourth takeover offer, which values the hospital group at 504 pence (R102.03) per share. This comes after Remgro made its first proposal of 463 pence (R93.72) per share a month ago, and three subsequent offers that were also rejected shortly after.
According to Mediclinic CFO Jurgens Myburgh, having weighed all relevant factors, including the current macro-economic conditions, the independent board is of the view that the near-term value realisation of the latest proposal provides Mediclinic’s shareholders an attractive alternative to the group continuing as an independent company.
“The board has decided to continue discussions with and grant diligence access to the consortium in order to progress the latest proposal for the company,” he says. “Under UK regulations, the consortium is required either to announce a firm intention to make an offer for Mediclinic or to announce that it does not intend to make an offer by 4 August 2022.”
Furthermore, he adds that, should a firm offer be made on the financial terms of the latest proposal, the board will recommend it to Mediclinic shareholders, subject to the agreement of other customary terms and conditions.
Jurgens concludes that “the board remains confident in Mediclinic’s strategic direction and long-term prospects as it positions itself as an integrated healthcare partner harnessing data, technology and innovation to facilitate growth across the continuum of care, supported by leading market positions”.