By Janice Kew and Allison Connolly
(Bloomberg) — Mediclinic International Ltd. agreed to combine with health-care provider Al Noor Hospitals Group Plc to create a hospital company with operations in the Gulf states, South Africa and Switzerland, trumping a potential counteroffer from NMC Health Plc.
Al Noor is buying Johannesburg-based Mediclinic in a reverse takeover, the companies said in a statement on Wednesday. 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. Al Noor investors can opt to get a special dividend of 3.28 pounds a share or tender their stock for 11.60 pounds apiece, which represents a 39 percent premium over the Oct. 1 closing price.
The deal would create the biggest private health-care provider in the United Arab Emirates, with operations in Dubai and Abu Dhabi. Mediclinic is seeking to expand in countries where rising household incomes have led to growing demand for private health care. NMC, another U.A.E. health-care company, had approached Al Noor about a possible offer following Mediclinic’s initial proposal.
Al Noor rallied 10 percent to 1,097 pence as of 8:16 a.m. in London trading. Mediclinic climbed 5.5 percent, the biggest increase since Feb. 12, to 123.65 rand in Johannesburg.
The transaction will result in Mediclinic shareholders owning 84 percent to 93 percent of the combined business, which will be renamed Mediclinic International Plc and listed on the London Stock Exchange. The company will also have a secondary listing in Johannesburg, and may trade on the Namibian Stock Exchange.