- Ramsay Health Care (RHC) receives an alternative takeover proposal from a consortium of investors led by KKR, after it withdrew its initial proposal
- The alternative offer is not dependent on receiving access to Ramsay Sante due diligence information, which was a requirement to progress the initial proposal
- The board believes this offer is inferior to the initial offer and has thereby decided to not progress the alternative offer any further
- However, it is continuing to engage with consortium to potentially strike an improved proposal
- Shares are down 3.15 per cent to $70.62 each at market close
Ramsay Health Care (RHC) has received an alternative takeover proposal from a consortium of investors led by KKR, after it withdrew its initial proposal.
The alternative offer is not dependent on receiving access to Ramsay Santé due diligence information, which was a requirement to progress the initial proposal.
Under the alternative offer, RHC shareholders would receive cash consideration of $88 per share for the first 5000 RHC shares.
Every share in excess of 5000 would receive $78.20 in cash and about 0.22 Ramsay Santé shares.
The company estimates about 18 per cent of shareholders would receive $88 per share and about 82 per cent would receive cash and Ramsay Santé shares.
However, the board believes this offer is inferior to the initial offer and has thereby decided to not progress the alternative offer any further.
However, it is continuing to engage with consortium to potentially strike an improved proposal.
The news came as the company released its financial year report where earnings before interest, tax, depreciation and amortisation was down 10.9 per cent to $1.83 billion. It also reported a statutory net profit decrease of 39 per cent to $274 million.
It said earnings were lower due to COVID-19 affecting its activity levels, case mix, and costs.
RHC will pay a fully franked dividend 48.5 cents, taking the full year dividend to 97 cents per share.
Shares were down 3.15 per cent to $70.62 each at market close.