Chamwe Kaira
Remgro has issued a cautionary notice to shareholders as it enters advanced discussions on a possible restructuring of its interests in Mediclinic Holdings.
The outcome could have a material impact on Remgro’s share price. Mediclinic’s Southern African operations include three hospitals in Namibia.
Remgro and MSC Mediterranean Shipping Company jointly own Mediclinic through Investment Holding Limited S.à.r.l (IHL).
They have reached an in-principle, non-binding agreement to separate their core geographic operations.
Under the proposal, Remgro would take full ownership of Mediclinic Southern Africa, while IHL would take full ownership of Hirslanden, the Swiss business.
Both companies would continue jointly owning Mediclinic’s Middle East operations and its stake in Spire Healthcare Group plc.
The companies said aligning ownership with their home markets would improve strategic focus and help them respond to changing healthcare environments.
They believe the shift would unlock value by strengthening partnerships and improving operational effectiveness.
The proposed 1:1 equity exchange ratio between Mediclinic Southern Africa and Hirslanden reflects their valuations as of 30 June 2025.
The plan also includes ringfencing bank borrowings within South Africa and Switzerland.
If finalised, the deal is expected to qualify as a category 2 transaction under JSE listings requirements.
Remgro advised shareholders to be cautious when trading its shares because of the potential market reaction.
The proposal still requires final negotiations, regulatory approvals, board approvals, third-party consents, and formal binding agreements.
The parties aim to finalise an implementation agreement early in 2026, with completion expected in the fourth quarter of that year.
Alongside the cautionary, Remgro released key figures from Mediclinic’s financial results for the six months ending 30 September 2025.
The group reported 10% revenue growth to US$2.57 billion, adjusted EBITDA up 23% to US$397 million with the margin improving to 15.5% from 13.8%, adjusted earnings up 91% to US$159 million, operating profit up 26% to US$204 million, net debt reduced to US$2.50 billion from US$2.58 billion and cash conversion at 84%.
Strong patient volumes, especially in the Middle East, along with a favourable speciality mix and efficiency gains supported the results.
Mediclinic said it would maintain operational stability and ensure continuation of care throughout the restructuring. It said employee interests remain a priority, and both shareholders aim to minimise disruption.
