Mediclinic corp action

09-FEB-16

What happened to Mediclinic yesterday? Effectively the old Mediclinic as you know it, the listed entity here, stopped trading. And as such, the code for Mediclinic, MDC, will return you currently a flat price at the close of trade Friday. What you end up with, as per our explanation from November titled Mediclinic, Al Noor update, is 0.625 shares in the new entity, currently called Al Noor. The share code tells you that the name change will take effect shortly, MEI is no doubt short for Mediclinic International. The share price here in Johannesburg will trade as a function now of the primary listing in London. Although as you know, most of the shares appear here on the share register, which is very different to say for instance, British American Tobacco or Glencore, those are different entities.

So don't freak out when next you look back and see a couple of things. One, as you have been stopped out the base price (i.e. your purchase price) will be much higher than where you bought them, you have effectively injured a gain of a capital nature, the good news is that your base price is now higher. The next thing to look out for is that your share quantity has changed, the ratio of 0.625 per one has now been applied. Lastly, the share price is nowhere near 120 Rand, the Mediclinic International/Al Noor share price closed last evening at 196.60 Rand. Be on the lookout for the change!