Mediclinic minded to recommend new takeover offer from Remgro, MSC
By Michele Maatouk
Date: Thursday 07 Jul 2022
(Sharecast News) - Hospital operator Mediclinic has received a fresh takeover proposal from a consortium led by billionaire Johann Rupert's Remgro that it is minded to recommend.
The company announced last month that it had rejected a £3.4bn takeover bid from the consortium on the basis that it "significantly undervalued" the group and its future prospects. However, it said on Thursday that the deadline for the consortium - which consists of Remgro and MSC Mediterranean Shipping Company - to make a takeover offer has been extended as they remain in talks.
The consortium had until 1700 BST on Thursday to either make a firm intention to make an offer or walk away, but that has been pushed back by the UK Takeover Panel to 4 August.
Mediclinic said that since rejecting the initial offer of 463p a share, the consortium has come back with three further proposals, two of which have been rejected.
The fourth proposal, however, received on Wednesday, values Mediclinic at 504p a share. This represents a premium of 35% to the share price on 25 May, before the initial proposal was made.
"The Independent Board remains confident in Mediclinic's strategic direction and long-term prospects as the group 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," the company said.
"However, having weighed all relevant factors, including the current macroeconomic 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. Therefore, should a firm offer be made on the financial terms of the latest proposal, the Independent Board would be minded to recommend it to Mediclinic shareholders, subject to the agreement of other customary terms and conditions."
At 1125 BST, the shares were up 7.3% at 474.40p.
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