RHC has traded between $47 and $54 since the disappointing result in August. Unlike HLS, Ramsay has addressed its balance sheet after selling its Sime Darby JV, with proceeds of the sale ($935m pre-tax) used to reduce debt while removing one of the variables/complicating factors that negatively impacted corporate interest last year – remember KKR bid $88 in 2022 was rejected by RHC’s board – another takeover that in hindsight looks great today!!
- We may be tempted to increase our RHC position under $50 if the HLS raise puts some pressure on the sector in the short term: We own RHC in our Active Growth Portfolio.
MM likes RHC ~$50
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