Following dozens of acquisitions and organic projects developed over the past decade, as well as unprecedented investments in innovation and medical technology, MedLife is exploring a broader range of financing instruments to support the Group’s next phase of growth.
In this context, MedLife is considering a potential share capital increase to finance organic development projects, investments in medical infrastructure and market consolidation opportunities.
Based on the strategic direction approved by the Board of Directors, the Group aims to accelerate its expansion across Central and Eastern Europe, with priority given to the Balkans, including through the establishment, together with a leading international financial institution, of a regional investment platform focused on healthcare, prevention and wellness over a four-year investment horizon.
A Romanian company listed on the Bucharest Stock Exchange, with a clearly defined strategy and average annual growth of more than 20% over the past 10 years, MedLife has become a benchmark for sustainable growth and strategic development in the private healthcare sector. The Company intends to maintain its highly dynamic growth profile, adopt new medical technologies and respond to the needs of the patients of the future, while preserving a balanced debt profile and a high level of operational efficiency.
MedLife, the leader of Romania’s private healthcare services market, announces the next stage of its development strategy, aimed at strengthening its position in the domestic market and accelerating regional expansion across Central and Eastern Europe, with priority given to the Balkans, through investments in healthcare, prevention and wellness.
Against the backdrop of the Group’s maturing business model and the consolidation opportunities identified both in Romania and across the region, the Company is considering two complementary strategic initiatives designed to provide the flexibility required for its next phase of growth: a potential share capital increase and the development, together with a leading international financial institution, of a regional investment platform.
Potential share capital increase to support development plans
This initiative is intended to secure the necessary shareholder mandate for the Company to carry out, if and when market conditions and investment opportunities warrant, a share capital increase through the issuance of new shares representing, in aggregate, up to 20% of the Company’s share capital, over a period of up to 18 months.
The purpose of this initiative is to provide the Group with swift and flexible access to capital-to-finance development opportunities with the potential to generate attractive long-term returns for shareholders, including organic development projects, investments in medical infrastructure and market consolidation transactions.
The implementation of any such transaction will be subject to the required corporate approvals, including approval by the General Meeting of Shareholders, the market conditions prevailing at the relevant time and the availability of investment opportunities that meet the Group’s return and financial discipline criteria.
Regional expansion strategy together with a leading international financial institution
In line with the strategic direction approved by the Board of Directors, MedLife intends to continue and accelerate its regional expansion, building on the Group’s presence in Romania, Hungary and the Republic of Moldova and gradually entering other Central and Eastern European markets, with priority given to the Balkans. This development may be pursued through acquisitions, greenfield investments, partnerships or other forms of cooperation, depending on the opportunities available and subject to the Group’s investment and return criteria.
“Healthcare is no longer solely about treatments, surgical procedures or medicines; it is also about prevention and, beyond that, longevity, physical activity, nutrition and education for a healthy lifestyle. The future of medicine lies in moving from treating disease to an integrated approach focused on prevention and on living not only longer, but healthier lives,” said Mihai Marcu, Chairman of the Board of Directors and CEO of MedLife Group.
To support this strategy, MedLife is exploring the establishment, together with a leading international financial institution, of a regional investment platform. Such a partnership could facilitate access to capital and the sharing of investment risks, while also strengthening governance and sustainability standards and enhancing the Group’s capacity to execute regional transactions.
The regional investment platform is expected to deploy capital gradually over a four-year horizon in companies operating in healthcare, prevention and wellness in Romania and the targeted Central and Eastern European markets, with priority given to the Balkans. The initiative will combine the resources and expertise of Romania’s largest private healthcare services provider with the know-how of a leading international financial institution with extensive global investment experience.
Any investment or commitment will be subject to the relevant corporate approvals and to prior assessment of country risk, the regulatory framework, market outlook, governance, capital requirements and expected returns.
The first investments under the platform are expected to be initiated in the first half of next year, with capital deployed gradually at a pace aligned with the Group’s financial capacity and investment priorities.
“Over time, we have demonstrated excellence in organic development and in the successful integration of significant market operators, and such an investment platform would represent a natural next step in MedLife’s evolution, providing additional resources to accelerate regional development.
We remain attentive to consolidation opportunities across the region and believe that MedLife’s expertise represents a significant competitive advantage in this process. Our ambition is to transform the experience already gained in Romania, Hungary and the Republic of Moldova into a consolidation model that can be applied across Central and Southeastern Europe, contributing to the development of a regional healthcare platform built on Romanian capital and expertise”, added Mihai Marcu, Chairman of the Board of Directors and CEO of MedLife Group.
MedLife Group, a pioneer of Romania’s private healthcare industry, became the first private healthcare services company to be listed on the Bucharest Stock Exchange and one of the most active local organisations in mergers and acquisitions (M&A), building an extensive platform over the past decade through the integration of dozens of entrepreneurial companies. Through these new strategic initiatives, MedLife intends to add a new component to its growth ecosystem, complementing its organic development capabilities, M&A experience and access to capital markets with a dedicated mechanism for long-term strategic investments.
