Billionaire Johann Rupert’s oldest company set to take control of Mediclinic in R16.3 billion deal

Remgro has sealed a deal with Investment Holding Limited (IHL), a subsidiary of MSC Mediterranean Shipping Company, and Mediclinic.

This deal will see Remgro, chaired by billionaire businessman Johann Rupert, and IHL restructure their interests in the combined Mediclinic group, with Remgro set to become the sole owner of Mediclinic International.

Currently, IHL and Remgro are co-shareholders in Mediclinic Holdings, each holding 50% of the company’s issued shares.

Mediclinic Holdings is the holding company of the combined Mediclinic group, which includes the following member companies –

• The Hirslanden Group, which houses the Swiss business unit of Mediclinic Holdings 
• The Mediclinic International Group (MCSA), which houses the Southern African business unit of Mediclinic Holdings
• The EHH Group, which houses the Middle Eastern business unit of Mediclinic Holdings
• A minority interest in UK-based Spire Healthcare

This deal will see IHL own 100% of Hirslanden, and Remgro will own 100% of Mediclinic International.

Remgro’s stake will include all of Mediclinic International’s subsidiaries, which include the Intercare group of companies and ER24 EMS.

Following the implementation of the transaction, Remgro and IHL will continue to hold 50% each in Emirates Healthcare (EHH) and the minority interest in Spire Healthcare. 

Formed in 1990, the Hirslanden Group is the largest private acute care hospital group in Switzerland and serves around one-third of the inpatients treated in Swiss private hospitals. 

The group has 16 hospitals, 5 outpatient surgery units and 1,769 inpatient beds.

MSCA is a private hospital group operating in South Africa and Namibia, focused on providing acute care, specialist-oriented, multi-disciplinary hospital services. 

It currently operates 50 hospitals, 15 day clinics, 6 sub-acute and 6 mental health facilities throughout South Africa and 3 private hospitals in Namibia, with more than 8,991 beds. 

The long-stop date for this deal is 30 September 2027, and all relevant conditions will need to be met by that date.

Notably, the deal is structured in a way that Remgro’s acquisition of MSCA is technically conditional upon the Hirslanden acquisition’s conditions being satisfied.

However, if the Hirslanden conditions are not fulfilled or waived in time, Remgro can waive that requirement and proceed with its acquisition regardless.

Both the Hirslanden Disposal and the MCSA Acquisition have a baseline purchase consideration of $950 million (R16.30 billion) each.

Why the restructure is happening

In a notice to shareholders on Tuesday, 31 March, Remgro explained that, 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,” the company said.

“These forces are creating new opportunities and expectations for quality and breadth of services, while intensifying pricing and regulatory pressures across markets.” 

Therefore, Remgro and IHL believe that assuming full ownership in their respective home markets will enhance strategic and operational alignment and drive agility in response to evolving market dynamics.

Aligning ownership with their respective home markets should enable Remgro and IHL to better tailor their strategies to local market dynamics.

“This will also better position both businesses to unlock value through their strengthened local partnerships and brand presence,” the company said.

“Remgro and IHL remain strongly aligned in their common desire to invest for the long term in the private healthcare sector broadly.”

The companies said they are committed to realising the potential of the combined Mediclinic Group’s network of hospitals, clinics and other facilities.

“Patients and employees are at the core of the combined Mediclinic Group and its shareholders’ values, and every effort will be made to accommodate all employees within the future structures,” the company said. 

“The interests of employees have been and continue to be carefully considered, and the proposed transaction is structured with a view to ensuring continuity and stability for the combined Mediclinic group’s employees and patients.”