MediClinic mulling merger with Al Noor to create Middle East hospital giant

JOHANNESBURG, Oct 5 (Reuters) – South African private hospital group Mediclinic International is in talks with Abu Dhabi-based rival Al Noor Hospital Group about a potential merger to create a market leader in Dubai and the United Arab Emirates, Al Noor said on Monday.

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Mediclinic, which runs the largest hospital network in both South Africa and Switzerland, already has an exposure in the United Arab Emirates and in the UK, through a minority stake in Spire Healthcare plc.

“The Board believes that the potential combination could have strong strategic benefits and could deliver significant shareholder value,” Al Noor said in a statement, adding that the potential merger would be implemented via the issue of new shares and may be classified as a reverse takeover.

Mediclinic said it was in talks that might affect its shares but did not say whether it in discussion with Al-Noor.

Shares in Al Noor jumped 7.6 percent to 9.19 pence and Mediclinic added 3.26 percent to 117 rand.

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