Clinic business

MEDICLIN reaches agreement on early renewal of leases for 20 clinic sites and settlement of lease dispute with (former) shareholders

MediClin AG / Keyword(s): Miscellaneous
MEDICLIN reaches agreement on early renewal of leases for 20 clinic sites and settlement of lease dispute with (former) shareholders

25-Oct-2022 / 19:17 CET/CEST
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Offenburg, October 25, 2022

MEDICLIN reaches agreement on early renewal of leases for 20 clinic sites and settlement of lease dispute with (former) shareholders

MEDICLIN Aktiengesellschaft (MEDICLIN) has entered into an agreement with PATRIZIA Frankfurt Kapitalverwaltungsgesellschaft mbH as trustee of the OIK-Fonds MediClin, in which (also former) shareholders or affiliated companies hold a significant stake, on an early renewal of existing lease agreements for 20 clinics. The leases for the relevant clinic buildings would have expired in 2027. In addition, as part of this agreement, MEDICLIN has agreed with its current or former shareholders ERGO Group AG, DKV Deutsche Krankenversicherung Aktienge-sellschaft and Provinzial Rheinland Lebensversicherung Aktiengesellschaft on a settlement of the lawsuit filed by the Company in mid-2016 with the regional court of Offenburg to claim rents which, in the opinion of the Company, were above market rates.

The terms of the new leases will apply from January 1, 2023 and will lead to a cash release of approximately €11 million per year from 2023.

In the 2022 consolidated financial statements, the balance sheet total as of December 31, 2022 should increase by approximately €65 million due to the recalculation of rights of use (lease liabilities) in accordance with IFRS 16. The impact on the group operating profit for 2022 is expected to be in the low single digit range.

The subject matter of the lawsuit to be settled under the agreement is a claim for rents which, in the opinion of MEDICLIN, were above market rates during the period from January 1, 2005 to August 31, 2015, which amounts to approximately 181 million euros plus interest.

The agreement reached by the parties has yet to be formalized through a court settlement. The closing of the legal settlement is scheduled for October 26, 2022. The Supervisory Board of the Company has approved the closing of the transaction on October 25, 2022.

About MEDICLIN Aktiengesellschaft (Ticker: MED; WKN: 659 510)

MEDICLIN comprises 35 clinics, seven care facilities and eleven medical care centers. The Group has around 8,350 care beds/places and employs around 10,200 people. In a strong network, MEDICLIN offers the patient integrative care from the first doctor’s visit to the operation and subsequent rehabilitation to outpatient follow-up. Doctors, therapists and nurses work together in a carefully coordinated way. MEDICLIN designs care and support for people in need of care according to their individual needs and their personal needs.

MEDICLIN ─ a company of the Asklepios group.

Oct 25, 2022 CET/CEST EQS distribution services include regulatory announcements, financial/corporate news and press releases.
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