Johannesburg - South African private hospital group
Mediclinic Corporation [JSE:MDC] said on Wednesday it plans to raise R5bn through
a rights offer to refinance debt and to fund expansion.
Mediclinic, which operates hospitals in South Africa,
Switzerland and the United Arab Emirates, said it would issue 174.6 million new
shares at R28.63 per share.
That represents a 25% discount to the stock’s 30-day volume
weighted average price.
Existing shareholders will be able to purchase 26.8 new
shares for every 100 held.
Mediclinic said the proceeds would be used to refinance its
existing debt of about R28bn, which is denominated in both the South African
rand and the Swiss franc.
“The refinancing provides the group with the appropriate
capital structure to pursue strategic growth and development opportunities,
while significantly reducing financing costs,” it said in a statement.
The rights offer is fully underwritten by Remgro [JSE:REM].
Among the conditions for the deal is approval from
Mediclinic shareholders.
Shares of Mediclinic are up 16% so far this year,
outperforming an 8.2% rise in Johannesburg’s All Share [JSE:J203] index.