Mediclinic, Al Noor Hospitals to combine in reverse takeover

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(Mediclinic website)
(Mediclinic website)

Johannesburg - South Africa's Mediclinic on Wednesday agreed to buy United Arab Emirates' Al Noor Hospitals Group, beating out rival NMC Health.

The deal will create a group spanning southern Africa, Switzerland and UAE.

Investors in London-listed Al Noor will be eligible to receive 1 160 pence per share if they tender their stock, or equity in the combined group, the companies said. The price represents a 39% premium to the price on October 1.

The deal, structured as a reverse takeover of Al Noor by Mediclinic, will create a London-listed group with a turnover exceeding $4bn operating 73 hospitals with over 10 000 beds and 35 clinics.

NMC Health, which is also listed in London, said it had made an informal cash-and-shares offer to buy Al Noor on October 9, days after Al Noor and Mediclinic said they were in talks.

Al Noor CEO Ronald Lavater said there was a "compelling strategic fit" with Mediclinic.

He called the NMC Health proposal "inferior both on the value and on the deal certainty".

Shares in Al Noor were up 10.4% at 1 098 pence at 0759 GMT, while Mediclinic was up 4.7% at R12.27. NMC Health was up 4.2% at 822 pence.

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