Mediclinic CEO steps down

Mediclinic International has begun searching for a new chief executive after Danie Meintjes announced his retirement from the company he joined in 1985.

Meintjes will step down on 31 July 2018, giving the nomination committee time to search for a suitable successor and enable a smooth transition.

Meintjes joined the group 32 years ago as a hospital manager of a Mediclinic in Johannesburg and rose to become a director of the group in 1996 and group chief executive in 2010.

He oversaw the acquisition of a 29.9% interest in UK-based Spire Healthcare in 2015 and led the reverse takeover of London-listed Al Noor Hospitals Group in February 2016, which sealed a promotion to the FTSE 100 soon after.

However, problems in the newly acquired Middle East business led to two profit warnings last year and this February, with a difficulty recruiting doctors and an unexpected impact from new healthcare payment legislation in the UAE for Emiratis who previously received free medical care.

But May's annual results saw the company keep its dividend steady and report recent "gradual improvements" in the troubled Abu Dhabi business, with good growth in Switzerland and South Africa keeping the group off life support.

Chairman Edwin Hertzog said on Tuesday: "Danie has been instrumental to the development of Mediclinic and the implementation of our strategy over 20 years of service to the group. We look forward to continuing to work with him over the coming twelve months and wish him well."

Meintjes said the company remained "in a strong position and has excellent prospects for growth".