MD Medical Group to Buy Medica Clinic in Novokuznetsk
MD Medical Group Investments Plc (“MD Medical Group”, “MDMG” or the “Company” – LSE: MDMG), Russia’s leading provider of private women’s and children’s healthcare, today announces the proposed acquisition of 100% of shares in Medica, a clinic focused on women’s and reproductive health, situated in Novokuznetsk (the Kemerovo region, Russia), a new region for the Group.
The facilities at Medica, established in 2009, include an IVF department, out-patient clinic, an operative gynaecology unit, and a “one-day” in-patient unit. Its highly professional team of doctors uses state-of-the-art medical equipment to offer a range of high-tech services, including IVF, prenatal care, ultrasound, minor gynaecological surgery, in-patient and out-patient treatments and plastic surgery. Medica benefits from an advantageous location within a medical community.
The Kemerovo region has a population of 2.7 million people, while the largest city in the region – Novokuznetsk has 1.3 million residents.
The region has a high birth rate. Annually, 35-37 thousand children are born in the region, while around 53% of newborns are the second or third child in their family. The birth rate of 13.2 per 1,000 residents in the Kemerovo region is in line with the average figure for Russia (13.3) and significantly exceeds the figure for Moscow (11.4).*
The Company expects to close the deal in December 2015 – January 2016, subject to approval by the Federal Antimonopoly Service of the Russian Federation. MDMG will acquire the shares for a consideration of RUB 282 mln.
Mark Kurtser, Chairman of the Board of Directors of MD Medical Group, said:
“This deal is yet another logical step in our strategy to expand throughout Russia’s most promising regions. I am happy to announce that with this acquisition, we are adding the eleventh region to our portfolio. Medica is a major, respected player within the Kemerovo region, which is a very attractive market, particularly given its high birth rate. The clinic’s extremely professional team of doctors provides a high standard of medical care. “Medica’s specialisation fits perfectly with our strategic focus on women’s and children’s healthcare and reproductive technologies. Closing this deal will allow us to further expand our IVF capacities, thus strengthening further our leading position in this area in Russia.”
Further information on Medica is available on the Group’s website: {root}presentations/.
For further information please contact:
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Investors |
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Elena Romanova
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About MD Medical Group
MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 23 modern healthcare facilities, including 4 hospitals and 19 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Novosibirsk, Irkutsk, Yaroslavl and Ryazan.
The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.
Forward-Looking Statements:
This press release contains forward looking statements, which are based on the Company’s current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company’s ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.
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