Again a private company

Medicover remained a listed company until 2006, when Jonas af Jochnick led a buy out of the company from the Stockholm Stock Exchange. The rationale behind the buy-out was that the business opportunities and challenges faced by Medicover would be better addressed as a private company:

Firstly, many of the investments required would only have a long term payback (the Warsaw Hospital is a good example of this). Secondly, the more volatile Central and East European markets would inevitably make it very difficult to maintain a smooth progression in quarterly earnings. Thirdly, the further growth of the business, with entry into new business areas and markets, would continue to require some "big bets”, which would be impossible for outside shareholders to understand and assess.

By taking the company private Jonas could minimize distractions for Medicover's management, enabling them to focus on the opportunities rather than reporting and explaining them to other shareholders.

In 2011, a majority shareholding in Medicover was donated by Jonas af Jochnick to the newly established charitable Foundation: Jonas and Christina af Jochnick Foundation.

Medicover's competition in Central and Eastern Europe originally consisted of small local companies, mainly physician owned and controlled. Now, many of those companies have been bought up by Private Equity investors. Their interest in the region is of course driven by the strong growth outlook, and also to some extent the example of success evidenced by Medicover.

The Private Equity owners by definition have a much shorter time horizon than Medicover's shareholders. It leads to periods of intense and often price based competition as these businesses seek to gain share and grow volumes. However, given that much of the asset and capability development required for success and leadership in healthcare is by nature long term, Medicover considers its long term focus a competitive advantage.

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