South Africa's Mediclinic agrees to buy UAE's Al Noor Hospitals - CNBC Africa

South Africa's Mediclinic agrees to buy UAE's Al Noor Hospitals

Southern Africa

by Reuters 0

Mediclinic agreed to buy United Arab Emirates' Al Noor Hospitals Group. Photo: Wikimedia

South Africa's Mediclinic Intl on Wednesday agreed to buy United Arab Emirates' Al Noor Hospitals Group, beating out rival NMC Health.

The deal will create a group spanning southern Africa, Switzerland and UAE.

Investors in London-listed Al Noor will be eligible to receive 1,160 pence per share if they tender their stock, or equity in the combined group, the companies said. The price represents a 39 percent premium to the price on Oct. 1.

The deal, structured as a reverse takeover of Al Noor by Mediclinic, will create a London-listed group with a turnover exceeding $4 billion operating 73 hospitals with over 10,000 beds and 35 clinics.

NMC Health, which is also listed in London, said it had made an informal cash-and-shares offer to buy Al Noor on Oct. 9, days after Al Noor and Mediclinic said they were in talks.

Al Noor Chief Executive Ronald Lavater said there was a "compelling strategic fit" with Mediclinic.

He called the NMC Health proposal "inferior both on the value and on the deal certainty".

Shares in Al Noor were up 10.4 percent at 1,098 pence at 0759 GMT, while Mediclinic was up 4.7 percent at 12,270 rand. NMC Health was up 4.2 percent at 822 pence.

Comments