16 Apr 2024 17:22

MDMG submits paperwork to relocate to Russian jurisdiction, receives consent from Cyprus regulator

MOSCOW. April 16 (Interfax) - MD Medical Group Investments Plc or MDMG, which manages the Mother and Child clinic chain, has received the official consent of the Cyprus Registrar to continue MD Medical's operations outside Cyprus as part of its re-domiciliation, the company said in a press release.

MDMG has submitted a set of documents for its state registration in the Special Administrative Region (SAR) on Oktyabrsky Island in Russia's Kaliningrad Region as an International Public Joint-Stock Company MD Medical Group Investments, in short MD Medical Group IPJSC.

The company expects registration as an IPJSC in Russia, including registration of the share prospectus by the Central Bank, will take 35 days. After that the Russian registrar starts maintaining the company's shareholder register, and GDRs will be exchanged for the company's shares.

The company said in February that it was planning to complete re-domiciliation at the beginning of Q2, after which it would be able to resume paying dividends.

MDMG shareholders approved the company's change of jurisdiction from Cyprus to the Special Administrative Region (SAR) of Oktyabrsky Island in the Kaliningrad Region at the end of August. After redomiciliation to the SAR, the company will be called International PJSC MD Medical Group Investments.

Shareholders decided in February that the IPJSC's issued share capital would be denominated in rubles and converted from $6.01 million divided into 75,125,010 ordinary shares of nominal value $0.08 each to 538,550,161.7 rubles divided into 75,125,010 ordinary shares of nominal value 7.16872 rubles each. Mark Kurtser will remain CEO.

MDMG, incorporated in 2010, is 67.9% owned by MD Medical Holding Limited, which is owned by MDMG founder and CEO Mark Kurtser. Approximately 32.1% of MDMG shares are in free float.

MDMG combines 55 medical institutions, including 11 multidisciplinary hospitals and 44 outpatient clinics with a presence in 27 Russian regions.