Al Noor Hospitals Group Plc to create the biggest private health-care provider in the United Arab Emirates even as rival NMC Health Plc said it would continue to pursue Al Noor.
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The companies said this month they were in talks about a tie-up that would create the biggest supplier of private care in Dubai and Abu Dhabi, with operations in Europe and Southern Africa.
Mediclinic shareholders will get 0.625 new Al Noor shares for each held in Mediclinic, as well as an interim dividend to be paid in December.
The cash payments to existing Al Noor shareholders in respect of the special dividend and tender offer will be partly funded through a subscription by Remgro Limited or its wholly-owned subsidiary for 72.12 million new Al Noor shares at a fixed price of GBP8.32 per share, to raise proceeds of GBP600 million; and a loan facility of up to GBP400 million.
The Al Noor deal doesn’t affect the Spire purchase, Mediclinic CEO Danie Meintjes said on the call. The new company will have a premium listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange and possibly in Namibian Stock Exchange. However NMC Health, another interested party, refused to rule itself out of the race to snap up Al Noor.
Al Noor Chief Executive Ronald Lavater said there was a “compelling strategic fit” with Mediclinic. Al Noor made no mention of the NMC approach on Wednesday. Mediclinic Chairman Edwin Hertzong will be chairman of the enlarged group, while Al Noor Chairman Ian Tyler will be senior independent director.
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“Given this growth and the competitive intensity, one way for leading providers to grow and increase market share would be through the acquisition or mergers route, especially when there are providers in the market with a similar focus on certain cities, patient populations or specialities, and coming together would help ensure that the combined entity takes a stronger position within the evolving health sector”, said Ahmed Faiyaz, a healthcare analyst with the consultancy EY. The proposal from NMC “was inferior both on the value and the certainty”, he told reporters earlier today.
