Share

Mediclinic in talks with Abu Dhabi hospital on tie-up

Johannesburg - Mediclinic [JSE:MDC] is in talks with United Arab Emirates healthcare provider Al Noor Hospitals about a tie-up that would create the biggest supplier of private care in Dubai and Abu Dhabi with further operations in Europe and southern Africa.

The potential deal between the two hospital owners would involve the issue of new Al Noor shares to Stellenbosch, Mediclinic and be classified as a reverse takeover, Abu Dhabi-based Al Noor said in a statement on Monday.

“There can be no certainty at this stage that the discussions between the company and Mediclinic will lead to any agreement,” it said.

Mediclinic is seeking to expand in countries where rising household incomes have led to growing demand for private healthcare. A combination with Al Noor would boost its operations in the United Arab Emirates, while it also owns hospitals in southern Africa and Switzerland.

The company entered the UK earlier this year after agreeing to buy a stake in Spire Healthcare Group for £431.7m.

“Abu Dhabi has been on Mediclinic’s radar for some time,” Andre Bekker, an analyst at Avior Capital Markets in Johannesburg, said by phone. “Al Noor is a good fit both from a geographic footprint and because of the specialis id services they offer.”

Mediclinic shares gained 3.3% to R117 by Monday's close in Johannesburg, the highest since May 20. The share was at R119.71 at 10:30, with a market cap of R117.20bn. The company said in an earlier statement it is in talks that could affect the share price, and did not respond to a phone call and email seeking further comment.

Al Noor gained 7.6% to 919 pence at the close in London, valuing the company at £1.1bn.

“If implemented, the potential combination would create a market leader across both Dubai and Abu Dhabi,” Al Noor said. The company would have “deep operational expertise and a well-balanced geographic profile.”




We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders