* To issue 174.6 mln shares at 28.6 rand each
* To use funds for refinancing, growth
(Adds details, background)
JOHANNESBURG Aug 1 (Reuters) – South African private
hospital group Mediclinic International said on
Wednesday it plans to raise 5 billion rand ($608 million)
through a rights offer to refinance debt and to fund expansion.
Mediclinic, which operates hospitals in South Africa,
Switzerland and the United Arab Emirates, said it would issue
174.6 million new shares at 28.63 rand per share.
That represents a 25 percent discount to the stock’s 30-day
volume weighted average price.
Existing shareholders will be able to purchase 26.8 new
shares for every 100 held.
Mediclinic said the proceeds would be used to refinance its
existing debt of about 28 billion rand, which is denominated in
both the South African rand and the Swiss franc.
“The refinancing provides the group with the appropriate
capital structure to pursue strategic growth and development
opportunities, while significantly reducing financing costs,” it
said in a statement.
Shares of Mediclinic are up 16 percent so far this year,
outperforming an 8.2 percent rise in Johannesburg’s All-share
index.
($1 = 8.2151 South African rand)
(Reporting by David Dolan)
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