NMC Health abandons bid for Al Noor Hospitals

NMC Health has abandoned its bid for Al Noor Hospitals, meaning South Africa’s Mediclinic International looks set to clinch a deal with the Abu Dhabi-based healthcare operator.

Al Noor confirmed in early October that it had received an approach from NMC regarding a possible offer.

NMC said on Monday: “After a thorough assessment of the opportunity, NMC has concluded that the potential transaction would not deliver sufficient returns or shareholder value in line with its stated policy, and accordingly NMC now confirms that it does not intend to make an offer for Al Noor.”

Last month, the boards of Al Noor and Mediclinic reached an agreement on the terms of a possible merger.

Under the proposed deal announced, Al Noor will acquire Mediclinic, with shareholders receiving 0.625 new shares for each Mediclinic share held.

The proposed deal will result in Mediclinic shareholders owning 84% to 93% of the enlarged group.

The groups said the merger will create a “leading international private healthcare group with deep operational expertise and a well-balanced geographic profile in Southern Africa, Switzerland and the United Arab Emirates”.

At 1450 GMT, NMC Health shares were up 1.9% to 773.50p, while Al Noor was flat at 1,158p.