5th Oct 2015 15:33
LONDON (Alliance News) - Al Noor Hospitals Group PLC on Monday confirmed it is in discussions with Mediclinic International Ltd regarding a possible merger of the two companies.
Al Noor said that if the merger occurs, it would be implemented through the issue of new shares to the shareholders of Mediclinic and may be classified as a reverse takeover. Al Noor has a market capitalisation of GBP1.09 billion.
Mediclinic is a Johannesburg-listed private hospital group with operations in South Africa, Namibia, Switzerland and the United Arab Emirates.
Al Noor noted that there can be no certainty that the discussions will lead to an agreement or that any such combination would be completed.
"The board believes that the potential combination could have strong strategic benefits and could deliver significant shareholder value," Al Noor said in a statement.
"The board believes that, if implemented, the potential combination would create a market leader across both Dubai and Abu Dhabi, which would be part of a leading international private healthcare provider with deep operational expertise and a well-balanced geographic profile in Southern Africa, Switzerland and the United Arab Emirates, with exposure to the UK market through a minority stake in Spire Healthcare PLC," the company added.
Shares in Al Noor were trading up 9.3% at 933.00 pence near the close Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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