SA shares in MediClinic surge 14%

SOUTH Africa-listed shares in MediClinic International surged on Friday in the first session since Abu Dhabi scrapped a co-payment on private healthcare that had been weighing on the firm’s operations in the United Arab Emirates.

Shares in MediClinic on the JSE advanced 13.3% to R141.02 by the close, their biggest one-day gain in more than two years.

On Thursday, the stock gained nearly 20% in London, where it has a primary listing.

The Abu Dhabi government cancelled a requirement for citizens to make a 20% co-payment for treatment at private medical facilities, official news agency WAM said on Wednesday, buoying MediClinic’s London shares.

The move is a major boost for MediClinic, which paid $2.2 billion for United Arab Emirates-based Al-Noor in 2015, in order to bulk up its presence in the fast-growing market.

But in July last year, Abu Dhabi cut insurance coverage under its Thiqa plan to 80% from 100% previously, meaning patients had to pay 20% of bills at private hospitals.

MediClinic, which has operations in South Africa, Switzerland and a stake in Britain’s Spire Healthcare, said it was still awaiting precise details from the Abu Dhabi authorities.

MediClinic in February flagged a revenue drop in the Middle East and has lobbied Abu Dhabi to reconsider the changes. – Reuters