Private healthcare companies Al Noor and Mediclinic today announced their plan to merge and list on the London Stock Exchange.
Mediclinic, which is currently listed in Johannesburg, will own a majority stake worth between 84 and 93 per cent, while Abu-Dhabi-based Al Noor Hospitals is offering its investors a special dividend of £3.28 per share, or the option to tender their stock for £11.60 per share.
The combined company, which is being branded Mediclinic International, will be the largest healthcare provider in the UAE and the third largest in South Africa. It will also operate services in some parts of Europe.
Danie Meintjes, chief executive of Mediclinic, said the merge created a “unique platform from which to pursue numerous expansion opportunities in the high-growth UAE and wider Middle East healthcare market, reinforcing our commitment to providing investment to drive the delivery of world class healthcare services in the region”.
The combination also further diversifies Mediclinic's geographic profile internationally, gives us additional exposure to US dollar-based high-growth earnings, and generates incremental financial and trading benefits through a listing on the LSE.
Shares in Al Noor surged almost 20 per cent when markets opened this morning, and are still up 18.6 per cent at £11.79.
Before confirming the deal with Mediclinic, Al Noor was approached by rival UAE-based health provider NMC Healthcare.
However, the deal has not discouraged the London-listed firm in its attempt to merge with Al Noor – in a statement today it said it “remains committed to a combination", sending shares up 1.33 per cent to £8.19.
The deal confirms our belief in the competitiveness of our initial possible offer and that the combination of NMC and Al Noor has the strongest strategic and financial rationale for all stakeholders.