You choose to criticise the offer being made for Mediclinic’s shares, which you describe as a penny-pinching (“Mediclinic board is right to reject Remgro’s R38bn takeover bid”, June 15).
The company’s shares traded at R102 in May 2018, and they dropped to R55 in May 2019, well before the pandemic hit the world. In May 2017 the share traded at R136 and it was above R200 in 2016.
Before rejecting this offer the Mediclinic board should take a good look at itself. They may just find that the decision to invest in Britain was a poor one. At the current price of R86 the share carries a price to earnings ratio of 22.3, which is above its two major competitors.
Shareholders should be happy with an offer that adds 9% to their current value.
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