R5,6-bn offered for Mediclinic’s stake in Spire Healthcare
The private hospital group Mediclinic has received an offer of R5.6-bn for its 29.9% stake in UK’s Spire Healthcare. If this transaction is successful, it will help Mediclinic cut debt and pursue new growth opportunities. Spire reported a net loss last year, largely due to a big goodwill impairment charge, resulting in Mediclinic also reporting a net loss from equity accounted investments of £10-m. Business Maverick (27 May 2021)
Mediclinic’s revenue for the year to March fell by 3% to £3-bn and was one percent lower in constant currency due to Covid-19 lockdown measures and restrictions on non-urgent elective procedures over the course of the year. Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda), a measure of operating performance, fell 21% to £426-m, which Mediclinic said reflected the reduced revenue, a largely fixed employee cost base, and an escalation in protective personal equipment costs and staffing requirements.