Medi-Clinic Corporation Limited - Cautionary Announcement
MEDI-CLINIC CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1983/010725/06
Share code: MDC
ISIN: ZAE000004370
("Medi-Clinic")
CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement published on the Securities Exchange News
Service on Wednesday, 12 November 2003, attention is drawn to the announcement
published today by, inter alia, Afrox Healthcare Limited ("Ahealth") in which
Business Venture Investments No. 790 (Proprietary) Limited ("Bidco") announced
an offer to acquire all of the issued share capital of Ahealth (the "Offer").
Medi-Clinic and its holding company, Remgro Limited, are facilitating the
funding arrangements required by Bidco to enable it to make the Offer. In
addition, Medi-Clinic will subscribe for a minority non-controlling equity
interest in Bidco of approximately 25%. Bidco has been incorporated solely for
the purpose of acquiring the issued share capital of Ahealth. A Consortium of
Black Economic Empowerment investors ("BEE Consortium"), led by Brimstone
Investment Corporation Limited and Mvelaphanda Strategic Investments
(Proprietary) Limited will subscribe for approximately 75% of Bidco"s equity.
The BEE Consortium includes nationally and regionally based doctor and
empowerment groupings ensuring broad based empowerment.
Following the Offer, and in an unrelated transaction to the Offer, it is the
intention of Medi-Clinic to acquire certain hospitals from Bidco ("the
Acquisition"). The acquisition of these hospitals is intended to complement Medi
Clinic"s existing portfolio of hospitals while ensuring that Bidco retains a
balanced portfolio of hospitals with national representation. Discussions in
this regard have commenced. The conclusion of the Acquisition will be subject
to, inter alia, the approval of the competition authorities.
Further details of Medi-Clinic"s participation in Bidco as well as the
Acquisition will be published in due course.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in the company"s securities until a further announcement is made.
Stellenbosch
17 November 2003
Financial adviser and transaction sponsor
Rothschild
Sponsor
Rand Merchant Bank, a division of FirstRand Bank Limited, Corporate Finance
Attorneys
Hofmeyr Herbstein & Gihwala Inc.
Investor relations
College Hill
Date: 17/11/2003 09:03:02 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
