Finally, there's a formal offer on the table from Remgro at a price that the Mediclinic board is happy with. 504 pence per share is the magic number, though this will be reduced by the 3 pence per share dividend that Mediclinic shareholders are due to receive. Rupert's investment holding company is making the bid alongside a subsidiary of Mediterranean Shipping Company.
Does it make strategic sense for a shipping business to own a hospital group? No. Does it makes sense for a super wealthy European family to diversify its portfolio by investing alongside a successful billionaire? Of course.
Most of all, I think it makes sense for Remgro to take Mediclinic private. For investors who want ongoing exposure to the group, they now have to get it through Remgro. An investment holding company can only close the discount to net asset value by owning assets that can't be bought anywhere else. Pyramid structures of listed companies that hold other listed companies have been unpopular with investors because of layers of costs and complexities.
Reading list:
Podcast list:
- Episode 87 of Magic Markets with Jonathan Loeb from Westbrooke Alternative Asset Management, in which we talked about the fascinating alternative asset class of mobile home parks in the US
- Episode 2 of Ghost Stories with Justin Clarke, founder of Private Property and now Operational Director at OrbVest - a great discussion on the journey as a startup and OrbVest's US medical real estate offering to South African investors
D aily market wrap with TreasuryONE:
The Bank of England hiked rates by 50 basis points. Though it was in line with expectations, this is still the most significant hike since 1995. This did little to support the pound, as the committee expects the UK to enter a recession by the fourth quarter of this year. Inflation remains very high in the UK and the market is expecting more aggressive hikes than the Bank of England is currently guiding. The euro and rand remain range-bound against the dollar, with the market focused on the non-farm payroll numbers due later today.
Platinum and palladium had a strong day, as did gold which traded back in the mid $1,780s. Oil has remained under pressure, with US inventories coming in higher and recession-driven fears continuing to weigh on the sector.
Finally, you can be shown how to "do your own research"
You've heard that term before, haven't you? It's all go od and well to DYOR, unless you have no idea where to start. This is where Magic Markets Premium comes in, with a weekly report and podcast on a global stock. Researched and presented by yours truly and my partner Mohammed Nalla (who has held very senior roles in banks and investment institutions), Magic Markets Premium gives you the chance to see what institutional-quality work looks like. For R990/year, it's perhaps the best investment you can make - an investment in yourself!
Have a wonderful Friday and reme mber that Ghost Mail will still be in your inbox on Monday morning even though it is an unofficial four-day weekend!
