Capio Shareholders Have Given A Green Card To $1.3 Billion Acquisition Bid From Ramsay

  • Oct 29, 2018 AEDT
  • Team Kalkine
Capio Shareholders Have Given A Green Card To $1.3 Billion Acquisition Bid From Ramsay

Despite struggling through the weaker financial performance Ramsay Health Care Limited  (ASX: RHC) got a heads up to the acquisition of Sweden based healthcare group Capio AB.

In today’s announcement to Australian Securities Exchange, Ramsay Health Care stated that shareholders holding approximately 96% of shares in Capio have voted in favor of Capio sale for the consideration of A$1.3 billion.

This comes after the Ramsay’s French subsidiary Ramsay Générale de Santé (RGds) placed a public offer to acquire 100% of Capio AB at an enhanced offer price of SEK 58 cash per share. Initially Ramsay tabled the all-cash offer of SEK 48.5 per share. 

After receiving the due approval of Capio’s shareholders, Ramsay has reportedly received the unconditional clearance from the French Competition Authority that outlines the final completion of all conditions that were required to be satisfied.

Ramsay CEO and RGdS Chairman Craig McNally stated that the completion of Capio acquisition was a major milestone for the company giving it a pan European footprint across seven countries with market leading positions in France and the Nordics, the stable and growing markets with favourable fundamentals.

Capio is a Nasdaq Stockholm-listed healthcare company that operates across 5 countries in Europe. It has a leading market position in Nordics and have a solid portfolio in France, particularly in Lyon and Toulouse. It operates specialist clinics, primary care units and hospitals while driving the value-based healthcare, digitalization and specialization services.

This acquisition has positioned Ramsay to become a leading healthcare provider in Europe while consistently moving toward the growth strategy for its hospital and out-of-hospital business.

On the financial front, the takeover is expected to be core EPS accretive for Ramsay within two to three years, providing the opportunity for substantial synergies for RGdS as well as further acceleration of our growth strategy.

To get the approval of remaining 4% shareholders, RGds has extended the acceptance period  to 7 November 2018 while their settlement is reported to commence on or around 15 November 2018.

But what if remaining shareholders of Capio refuse to give their consent to takeover?

In such a case RGdS enjoys sufficient right to initiate a compulsory buy-out procedure under the Swedish Companies Act. The acquirer Ramsay Générale de Santé also intends to get Capio’s shares delisted from Nasdaq Stockholm.

During Fiscal 2018 health care group Ramsay has missed what it anticipated its profit to be. But, the group has shown a significant improvement in its long-term growth prospects, including brownfield development, growth through acquisition of Capio, and pubic private collaborations.

On the news of expanding its footprint in Europe through acquisition strategy, Ramsay has witnessed a bullish market trend today. Ramsay’s share price has surged 1.278% to close at $54.690 on 29 October 2018. Whereas, its PE multiple was 28.920 x with market capitalization of $10.91 billion. RHC stock has witnessed a negative performance change of 19.77% over the past one year.


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