Consortium to Buy South African Hospitals Firm Mediclinic for $4.49 Billion

South Africa's Remgro Ltd said on Thursday it will buy hospital chain operator Mediclinic International in a consortium with Switzerland's MSC Mediterranean Shipping for 3.7 billion pounds ($4.49 billion), Reuters reported. The offer, which was the consortium's fourth after the earlier ones were rejected by Mediclinic's board, values the company at 6.1 billion pounds ($7.41 billion), Remgro and Mediclinic said in a joint statement. Mediclinic is South Africa's third biggest operator of hospitals and billionaire tycoon Johann Rupert's Remgro already owns up to 45% of the company. Remgro, an investment company with operations spread across financial services, consumer products, infrastructure and healthcare, had been under pressure from investors and shareholders to unlock value and simplify the group structure. Its plan to buy out Mediclinic is part of those efforts. Mediclinic had dragged on Remgro's earnings as the hospital chain was hit by the COVID-19 pandemic and revenue from surgeries and other procedures dropped. However, it has largely returned to normal operations and analysts had said the time was ripe for Remgro to unlock value in the company that could benefit shareholders. Read more.