The Combination of Al Noor Hospitals Group plc and Mediclinic International Limited was completed in February 2016 creating the largest private healthcare provider in the United Arab Emirates.
Al Noor provides primary, secondary and tertiary healthcare to over two million outpatients per annum through three hospitals, 29 clinics and an oncology centre, mainly in Abu Dhabi. Al Noor brings more than 4 000 experienced employees into the Mediclinic Group, including 684 physicians.
“The combined business represents a unique platform from which to pursue numerous expansion opportunities in the high-growth UAE and wider Middle East healthcare market, reinforcing our commitment to drive the delivery of world class healthcare services in the region. The combination also further diversifies Mediclinic’s geographic profile internationally, gives us additional exposure to USD-based high-growth earnings, and generates incremental financial and trading benefits through a listing on the LSE.”
Danie Meintjes, CEO Mediclinic International
Compelling strategic fit
The combined organisation is a significant step forward for Mediclinic in the delivery of its strategic objective to create a leading international healthcare Group, underpinned by the complementary geographies of the two businesses and shared commitment to outstanding patient care.
Attractive growth opportunities
There are substantial unmet medical needs in the Middle East, with private healthcare growing fast in response to the needs of a rapidly expanding and ageing population, an increasing incidence of lifestyle-related medical conditions and service gaps in the current healthcare market.
Significant cost synergies
The close proximity of Mediclinic’s operations in Dubai and the complementary nature of the two operations offer economies of scale through increased purchasing power, combining corporate functions and sharing operation teams, in addition to sharing knowledge and best practice across the Group.
The Combination enhanced Mediclinic’s well-balanced geographic portfolio across Southern Africa, Switzerland and the UAE, with exposure to the UK market through its minority stake in Spire Healthcare Group plc. The enlarged Mediclinic Middle East contributed 26% of the Group’s underlying earnings for the period ended 31 March 2016.
The Combination brings a primary listing on the Main Market of the London Stock Exchange and has been followed by inclusion in the FSTE 100 index. This will give Mediclinic access to a broader global investor base and new sources of capital at a lower cost.