Africa-news

Africa-news (598)

The South African Reserve Bank will raise its benchmark interest rate by 50 basis points to 5.25% next Thursday as it tries to rein in quicker inflation, a Reuters poll found.

The euro has taken a major beating against its US peer since Russia's invasion of Ukraine in February, falling to its lowest level in 20 years as surging gas prices and uncertainty around the Russian energy supply stoke recession fears in the eurozone.

The South African Reserve Bank is set to introduce new regulations around trading cryptocurrency in the country in the next 12-18 months, says deputy governor Kuben Naidoo.

Botswana Oil is set to establish fuel storage facilities at Mozambican and Namibian ports next month, which will double the country's strategic oil reserves and provide a buffer against declining refining capacity in South Africa.

The rand weakened to a fresh 21-month low early on Tuesday, as dollar hit a two-decade high on the view that the US Federal Reserve will hike interest rates faster and further than its peers to tackle soaring inflation.

The rand weakened in early trade on Monday, resuming its downward trend from the week before, as the safe-haven dollar strengthened amid global growth fears.

Groupe Canal+, a French broadcasting giant, which recently increased its stake in DStv-owner MultiChoice to 18.44% in June, has further increased the position to 20.12%. Canal+ began buying up shares in MultiChoice in 2020 and has spared no time to increase its stake.

Protests are building in Africa over surging fuel costs that have governments scrambling over how to respond.

After rejecting three cash offers from Remgro and MSC in recent weeks, Mediclinic’s board says it will support the fourth.

Mediclinic received and rejected the first offer - for 463 pence (R89, at the time) - from the parties a month ago. Since then, Remgro and MSC submitted three further offers.

 

Two of these bids have been rejected. But on Wednesday, the parties made a new offer of 504 pence (R101) per share (minus Mediclinic's final dividend for this current year).

The latest bid offers a premium of 35% to the Mediclinic share price before the first offer was made, Mediclinic's independent board said in a statement.

"The independent board remains confident in Mediclinic’s strategic direction and long-term prospects as the group positions itself as an integrated healthcare partner, harnessing data, technology and innovation to facilitate growth across the continuum of care, supported by leading market positions. However, having weighed all relevant factors, including the current macro-economic conditions, the independent board is of the view that the near-term value realisation of the latest proposal provides Mediclinic’s shareholders an attractive alternative to the group continuing as an independent company," it said in a statement.

The board said it would recommend shareholders accept the bid, if a final offer is made. 

By lunchtime, Mediclinic's share price was up 9% to R95.24.

It will now progress with talks and allow Remgro and MSC access to do due dilligence.

Remgro and MSC must make a firm offer for Mediclinic by 4 August. Remgro and MSC are equal partners in the consortium that wants to take control of Mediclinic. Remgro already owns 44.6% of Mediclinic. MSC is an international shipping group and a privately held company owned by the Italian Aponte family.

MSC’s head office is in Switzerland, where Mediclinic owns the largest private hospital group, Hirslanden. Remgro chairperson Johann Rupert also has a home in Switzerland, where his Richemont group is headquartered.

Mediclinic was founded in 1984 after the Rembrandt Group (now Remgro) commissioned Edwin Hertzog to investigate the launch of a private hospital group. It has been listed on the JSE since 1986.

Remgro already owns nearly 45% of Mediclinic, according to data compiled by Bloomberg. There’s no certainty the investor group will proceed with a takeover, and the negotiations could still fall apart at the last minute, the people said. 

Representatives for the consortium and Mediclinic declined to comment. 

Johann Rupert is South Africa’s richest person with a net worth of about $8.7 billion, according to the Bloomberg Billionaires Index. Through a family trust, he controls Richemont, the Swiss luxury-goods company behind brands like Cartier, Montblanc and Vacheron Constantin.

Mediclinic is a diversified international private healthcare services group, established in South Africa in 1983, with divisions in Switzerland, Southern Africa (South Africa and Namibia) and the Middle East.-Fin24

African nations need US$424 billion this year to help them cope with the devastation caused by the coronavirus pandemic, according to the head of the continent’s top multilateral lender.

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