Mediclinic’s drop in market value negatively affects Remgro
Remgro reports a 15% decline in intrinsic net asset value for the six months to December, attributed to Mediclinic’s 38.7% drop in market value
Investment group Remgro has reported a 15% decline in intrinsic net asset value per share to R257.79 for the six months to December. It attributed the decline mainly to a 38.7% drop in the market value of the Mediclinic investment and the dilutive effect of its rights issue. Headline earnings rose 29.7% to R4.69bn. Earnings increased 56.5% to R5.2bn lifted by, among other factors, the reversal of impairment of the investment in Grindrod amounting to R724m. Remgro has investment in industries such as media, infrastructure, insurance, banking, and healthcare. Mediclinic’s contribution to Remgro’s headline earnings rose to R983m from R787m in the six months to December 2015. The increase is mainly due to Remgro's increased interest in Mediclinic from 42.1% to 44.6%, the inclusion of the results of Al Noor and Spire Healthcare Group, a strong performance in Switzerland, and good organic growth in Southern Africa. Remgro said the increase was partly offset by the under-performing Middle ...
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