Private hospital group Mediclinic has announced that it will forego paying a final dividend and instead use the funds to finance its full acquisition of Matlosana Medical Health Services.
- Mediclinic already owns a 49.9% stake in Matlosana and will acquire the remaining 50.1% for a price of R310 million (approximately $21 million).
- The acquisition is in line with Mediclinic’s strategy of expanding its presence in South Africa’s private healthcare sector.
- The decision to forego the final dividend will enable Mediclinic to strengthen its balance sheet and invest in growth opportunities.
- The final dividend was expected to be worth approximately R1.9 billion (approximately $130 million).
- The board of directors has recommended that shareholders approve the acquisition and the cancellation of the final dividend at the upcoming annual general meeting.
- The acquisition is subject to regulatory approval.