Mediclinic rejects £3.4bn takeover proposal

London-listed private hospitals group Mediclinic has rejected a £3.4bn cash offer from a consortium of its biggest shareholder and a shipping group, saying the proposal undervalued the company.

Remgro, which owns almost 45 per cent of Mediclinic, and MSC, the world’s second-largest container shipping group, had pitched the offer at 463p a share. Remgro is the investment vehicle of the South Africa-based billionaire Rupert family. Its chair Johann Rupert is also chair of luxury goods group Richemont.

Mediclinic was founded in South Africa but also operates in Switzerland, Namibia and the United Arab Emirates. It also owns 29.9 per cent of Spire Healthcare, a UK-based private health group.

The company’s shares closed at 373p on May 25, the last business day before the proposal was submitted. They rose 3 per cent in early London trading on Thursday to 438p, and are up nearly 37 per cent this year.

“The board of Mediclinic (excluding the Remgro representative) considered the proposal, together with its advisers, and concluded that it significantly undervalued Mediclinic and its future prospects,” the group said in a statement. The board “unanimously” rejected the proposal on May 31, it added.

The consortium has until July 7 at 5pm to decide whether to make an offer or withdraw any intention to do so.

Mediclinic looks set to build on its profitability this year, buoyed by a “significant” rise in the number of patients and greater demand for services such as elective procedures as Covid-19 recedes.