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Johannesburg - During December 2005, Mediclinic concluded a broad-based black economic empowerment transaction in terms of which strategic black partners as well as Mediclinic [JSE:MCI] employees were introduced as shareholders, in aggregate, of 15.0% of the issued ordinary share capital of Mediclinic.
At the time, two employee share trusts, the Mpilo Trust and The Mpilo Trust (Namibia), subscribed for approximately 15.8 million ordinary shares or 4.0% of the issued ordinary share capital of Mediclinic, at the market value of R18.40 per share and held for the benefit of approximately 10 927 participating employees of Mediclinic as beneficiaries of the trusts, of which 52% were black and 89% were women.
The first three allocations to employees were subject to a ten year lock-in period which expired on December 31 2015. At that time, as announced by Mediclinic on December 3 2015, qualifying participating employees elected to either dispose of all, or some, of the relevant Mediclinic shares linked to their units in the trusts, or to take transfer of the relevant Mediclinic shares linked to their units.
A successful accelerated book-build offering was launched at that time for the benefit of those employees electing to sell some or all of their shares. Following the successful accelerated book-build offering on December 2 2015, the trusts continued to hold shares, which had been allocated to employees subsequent to the first allocations.
Due to the combination of Mediclinic and Al Noor Hospital Group, and specifically the issue of new Al Noor shares to the shareholders of Mediclinic, Mediclinic and the trustees of the trusts agreed to bring forward the vesting date of the further allocations to December 31 2015.
On January 28 2016, an accelerated book-build offering of 4 001 350 Mediclinic shares, representing the majority of the remaining Mediclinic shares held by the trusts, was launched for the benefit of eligible participating employees.
Mediclinic announced on Tuesday that the book-build was successfully priced and closed. The book-build was considerably oversubscribed and all the book-build shares were placed with qualifying institutional investors at a price of R119.00 per book-build share, generating gross proceeds of R476.16m for the beneficiaries of the trusts.
The book-build price represents a discount of 2.3% to the closing price of Mediclinic shares of R121.81 on January 27 2016.
The employee component of Mediclinic's black economic empowerment transaction has been an "exceptional success", according to the company. In total, over R1.4bn has been distributed to eligible employees of Mediclinic since the inception of the trusts in 2005.
Mediclinic said it would like to thank its employees for their years of service, as well as all investors that submitted bids and participated in the book-builds.
