Mediclinic, which is partly owned by billionaire Johann Rupert’s Remgro, is selling its stake in Mediclinic’s Swiss operations for around R16 billion, while also acquiring full control of its South African operations.
Remgro’s history dates back to the founding of the Rembrandt Group by Anton Rupert, Johann’s father. Johann is the company’s chair and South Africa’s richest man, with a net worth of over $13 billion.
Rembrandt saw a major split when its international assets were spun off into Richemont in 1988, the primary source of the family’s wealth. The South African assets were kept in today’s Remgro.
The Rupert family holds all the unlisted B shares in Remgro, giving them over 40% of the company’s voting rights.
Remgro has now announced a change regarding its interest in Mediclinic Holdings, which it co-owns with Investment Holding Limited (IHL), a subsidiary of the Mediterranean Shipping Company (MSC).
Remgro and IHL each own 50% of Mediclinic, and the two parties will change the ownership structure of their South African operations, the MCSA Group, and their Swiss Operations, the Hirslanden Group.
As per the deal, IHL will take over 100% of Hirslanden, while Remgro will acquire 100% of MCSA, which includes the Intercare group of companies and ER24 EMS Proprietary Limited.
“Over recent years, healthcare delivery has become increasingly shaped by rapidly changing regulatory, clinical and patient dynamics,” said Remgro.
“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.”
Due to increasing pricing and regulatory pressures across markets, Remgro and IHL believe that assuming full ownership in their respective home markets will improve operations.
The parties believe that full home ownership will improve strategic and operational alignment, with Remgro and IHL able to tailor strategies to local market dynamics and patient needs.
They also believe that the operations will be better positioned to unlock value through improved local partnerships and brand presence, while building strong relationships with local stakeholders.
Remgro and IHL will maintain their joint interests in the Middle East, which is a region that they believe shows a strong opportunity for growth and collaboration.
It will also allow both parties to combine their complementary expertise and resources to serve a rapidly expanding healthcare market.
Structure of the deal
Remgro said that both the Hirslanden Disposal and the MCSA Acquisition will be executed at the same time for a consideration of $950 million (around R16.2 billion) on a 1:1 basis.
This is based on agreed valuations of both the Hirslanden Group and the MCSA Group determined as at the Locked-Box Date, being 30 June 2025.
The purchase consideration will be adjusted to account for any value leakage or accruals up until the implementation.
The book value of 100% of the Hirslanden Group’s net assets is approximately CHF1.529 million (R32 billion).
The profits after tax attributable to those net assets for the 6-month period ending 30 September 2025 were approximately CHF 28,400,000 (R608 million).
The book value of 100% of the net assets of the MCSA Group is approximately R16.758 billion, and the profits after tax attributable to those net assets for the 6-month period are about R989.5 million.
The parties will enter into certain transitional service agreements to govern the provision of certain provisions from MCSA and its subsidiaries to EHH and Hirslanden until 31 December 2027.
The deal has a long stop date of 30 September 2027. If one sale goes through and the other falls through, Remgro and IHL will be liable to pay the other party their respective shares in cash.
