Healthcare group Mediclinic International and investment firm Remgro yesterday announced the acquisition of a 29.9% stake in UK firm Spire Healthcare Group.
Mediclinic and Remgro said they have entered into an agreement in terms of which Remgro will acquire 120-million Spire Healthcare shares from funds managed by Cinven‚ a European private equity firm‚ for a purchase consideration of £431.7-million (R8-billion) to secure the Spire Healthcare holding in the opportunity window available.
In turn‚ Mediclinic will acquire the Spire Healthcare holding from Remgro for about R8.6-billion‚ being the aggregate of the purchase price‚ transaction and funding costs.
To raise the required funding Mediclinic proposes a fully underwritten‚ renounceable rights issue to qualifying Mediclinic shareholders of 111-million shares at R90 per share for an aggregate amount of R10-billion.
The balance of about R1.4-billion will be retained for transaction costs and to support future growth opportunities.
Spire Healthcare is one of the UK’s largest private hospital providers with 39 hospitals and 13 clinics across England‚ Wales and Scotland. The company offers integrated surgical‚ medical and diagnostic services.
“We identified the opportunity to acquire a meaningful holding in Spire Healthcare and can now realise it with the facilitation by Remgro‚” Mediclinic CEO Danie Meintjes said.
“We are investing in a growing developed market while also diversifying into an attractive new geography with a strong currency. Both Mediclinic and Spire Healthcare will benefit from collaboration and improving cost synergies and efficiencies.”
The acquisition of the Spire Healthcare holding from Remgro is subject to the successful completion of the rights issue. Remgro holds 41.3% of Mediclinic and has committed to follow all its rights and agreed to underwrite the balance of the proposed Mediclinic rights issue.
Remgro CEO Jannie Durand said: “We’re delighted to support Mediclinic in acquiring this holding in Spire Healthcare. By joining forces we were able to act swiftly in the interests of both Remgro and Mediclinic shareholders.”
Mediclinic and Remgro acquire 29% of UK firm
Mediclinic and Remgro said they have entered into an agreement in terms of which Remgro will acquire 120-million Spire Healthcare shares from funds managed by Cinven‚ a European private equity firm‚ for a purchase consideration of £431.7-million (R8-billion) to secure the Spire Healthcare holding in the opportunity window available.
In turn‚ Mediclinic will acquire the Spire Healthcare holding from Remgro for about R8.6-billion‚ being the aggregate of the purchase price‚ transaction and funding costs.
To raise the required funding Mediclinic proposes a fully underwritten‚ renounceable rights issue to qualifying Mediclinic shareholders of 111-million shares at R90 per share for an aggregate amount of R10-billion.
The balance of about R1.4-billion will be retained for transaction costs and to support future growth opportunities.
Spire Healthcare is one of the UK’s largest private hospital providers with 39 hospitals and 13 clinics across England‚ Wales and Scotland. The company offers integrated surgical‚ medical and diagnostic services.
“We identified the opportunity to acquire a meaningful holding in Spire Healthcare and can now realise it with the facilitation by Remgro‚” Mediclinic CEO Danie Meintjes said.
“We are investing in a growing developed market while also diversifying into an attractive new geography with a strong currency. Both Mediclinic and Spire Healthcare will benefit from collaboration and improving cost synergies and efficiencies.”
The acquisition of the Spire Healthcare holding from Remgro is subject to the successful completion of the rights issue. Remgro holds 41.3% of Mediclinic and has committed to follow all its rights and agreed to underwrite the balance of the proposed Mediclinic rights issue.
Remgro CEO Jannie Durand said: “We’re delighted to support Mediclinic in acquiring this holding in Spire Healthcare. By joining forces we were able to act swiftly in the interests of both Remgro and Mediclinic shareholders.”
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