MedLife plans to attract EUR 80 M through BVB to reinforce the healthcare service market

MedLife’s Board of Directors, Romania’s largest private healthcare services provider, convened the General Shareholders’ Meeting for September 13, 2017 in order to assess the opportunity to attract EUR 80 million funding through the Bucharest Stock Exchange (BVB) to reinforce the healthcare service market, as a press release informs.

Approximately EUR 20 million may be attracted by increasing the share capital, and approximately EUR 60 million by issuing bonds.

“The funds thus attracted will be intended for the purchasing programme and for greenfield projects,” the release notes.

MedLife’s BD also proposes to the GSM its delegation and authorisation, until 13 September 2020, to take decisions regarding the increase of MedLife’s share capital, by the maximum amount of RON 650,000.

This increase will take place by issuing maximum 2.6 million new shares, in exchange for cash contributions, and if this increase is made at the maximum authorised level, the share capital will go from RON 5,023,000 to RON 5,673,000.

At the same time, MedLife’s BD proposes to the GSM to approve the issuance of non-guaranteed corporate bonds, with a total nominal value of maximum RON 274,200,000, which shall be given to investors through a private investment or a public offer. This issuance of bonds will be made, according to the market conditions and the company’s funding needs, in a single issuance or in an offer programme.

“In recent years, MedLife has preserved its position of clear leader of the healthcare service market, by completing 16 successful acquisitions and integrations, besides its solid organic growth. We wish to take advantage of the opportunities provided by the market, and as we estimate that next year we will complete a few significant transactions, we are preparing to take over the central role in reinforcing the market”, said Mihai Marcu, MedLife President and CEO (photo).

The MedLife shares started being traded on the capital market in Bucharest on December 21, 2016 for a price of RON 26 per unit. The total value of the initial public offer was RON 230 million for a package of 44 percent of the company’s shares, namely 8,840,480 shares, with 8,036,800 being basic shares, to which an additional number of 803,680 over-allocated shares was added.

Bucharest Stock Exchange (BVB)greenfield projectshealthcare service marketincreasing the share capitalissuing bondsMedLifeMedLife President and CEOMedLife sharesMihai Marcunew sharesPrivate investmentpublic offer
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