Johann Rupert’s investment group Remgro and Investment Holding Limited (IHL) plan to proceed with the restructuring of their respective interests in Mediclinic Holdings and have entered into an implementation agreement for the proposed transaction.
The plan, which was outlined in a cautionary announcement in January, will result in IHL owning 100% of Hirslanden and Remgro owning 100% of Mediclinic Southern Africa (MCSA) and MCSA’s interest in its subsidiaries and associates, including the Intercare group and ER24 EMS.
IHL and Remgro, through its wholly owned subsidiaries, each hold 50% of Mediclinic Holdings.
The transaction comprises two components, Remgro said on Tuesday.
Mediclinic Holdings will sell to IHL all the shares in Hirslanden, and Remgro will purchase from Mediclinic Holdings all the shares in MCSA.
Each of the components will be executed at the same consideration of $950m.
Mediclinic Holdings is the holding company of the Combined Mediclinic Group, which comprises Mediclinic Holdings and all its subsidiaries, including the member companies of the Hirslanden Group (which houses the Swiss business unit of Mediclinic Holdings), the MCSA Group (which houses the Southern African business unit of Mediclinic Holdings), the EHH Group (which houses the Middle Eastern business unit of Mediclinic Holdings) and a minority interest in UK-based Spire Healthcare.
IHL and Remgro will continue to hold their respective joint interests in the Middle East business, conducted by the EHH Group and the Spire business, held through Spire Healthcare, Remgro said.
Remgro said over recent years healthcare delivery has become increasingly shaped by rapidly changing regulatory, clinical and patient dynamics.
“The landscape continues to evolve at an increasing rate, driven by the growing prevalence of chronic diseases, ageing populations and an exponential expansion in medical knowledge and technology. These forces are creating new opportunities and expectations for quality and breadth of services, while intensifying pricing and regulatory pressures across markets.
“As a consequence, Remgro and IHL believe assuming full ownership in their respective home markets will enhance strategic and operational alignment and drive agility in response to evolving market dynamics,” Remgro said.
The proposed transaction will align ownership and leadership more closely with their respective home markets, enabling Remgro and IHL to tailor their respective operational strategies to local market dynamics and patient needs.
“This will also better position both businesses to unlock value through their strengthened local partnerships and brand presence, deepening trust with patients, clinicians and regulators, and to drive sustainable growth through greater operational focus.”
The transaction is conditional on approval from the relevant Swiss and South African authorities.
Business Day