Mediclinic drops R3-billion after share sale to fund acquisitions

Mediclinic International, South Africa’s largest private-hospital owner, fell the most in six months after raising R3.18-billion in a share sale to finance acquisitions abroad.

Mediclinic dropped as much as 4.7% to R78.75, the steepest intraday decline since December 12, and was trading down 1.2% at R81.71 as of 10.25am in Johannesburg.

The company sold 41-million shares to institutional investors at R77.50 apiece, Stellenbosch-based Mediclinic said in a statement on Thursday. That represents a 1.7% discount to the 30-day volume-weighted average price of R78.86, the hospital operator said.

Mediclinic has “identified a number of attractive acquisition and investment opportunities in Switzerland, the United Arab Emirates and selected African opportunities,” it said on Wednesday. The company has already entered into binding agreements to buy an acute-care, multidisciplinary hospital in Switzerland and is in talks to acquire outpatient facilities in the country.

“When Mediclinic does deals, it’s very considered and where it knows it can add value,” Mathew Menezes, an analyst at Avior Research in Johannesburg, said by phone. “Ideally these would be done with debt, but the balance sheet is stretched and it would be silly to turn down an acquisition opportunity just to avoid selling shares.”

The company has R22.7-billion in debt due in 2017, according to data complied by Bloomberg.

The stock sale represents about 5% of equity capital and buyers will be entitled to a final dividend of 68 cents a share to be paid June 23, the company said. Trading of the new securities is scheduled to start on June 20.– Bloomberg

Advertisting

Golding opportunity for kleptocrats

Government must take steps to clean up the country’s dirty real estate market, which has long offered a safe haven for criminals

SAA’s rescue men fly in defiance

The airline’s business rescue practitioners ignored a warning not to announce route closures and possible job cuts ahead of a restructuring plan
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it