Ramsay Healthcare (RHC) target in $20b takeover
RHC +24.24%: articles about a potential takeover of Australia’s largest hospital operator started popping up overnight forcing Ramsay to confirm the reports this morning. A KKR led consortium has put forward an initial $88/sh bid, a 26.7% premium to yesterday’s close for the company which owns and manages hospitals all over the world. The indicative proposal would require a number of approvals given the complex structure of the company, while KKR would also need to put together $20b to close the deal. Ramsay is also in the midst of selling its stake in Sime Darby which complicates things. They also have a decent franking credit balance so it’s likely part of the bid would be paid as a dividend to distribute that to shareholders – if the deal is eventually approved. Shares closed 10% below the offer price.
