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Highlights:
- Ramsay had received an indicative acquisition proposal from a consortium of financial investors led by KKR.
- Ramsay and the consortium have mutually agreed to terminate the takeover discussions.
- The healthcare company can share a major business update in November 2022.
Global hospital group, Ramsay Health Care Limited (ASX:RHC), on Monday (26 September 2022), shared via ASX announcement that it has ended the takeover discussion with the consortium of financial investors led by KKR.
Today, Ramsay shares were spotted trading 6.56% lower from its previous close at AU$56.56 per share at 10:19 AM AEST with a market capitalisation of AU$13.85 billion.
Meanwhile, at 10:46 AM AEST, the benchmark index, ASX 200 health care was up 0.12% to 40,002.80 points.
Why did Ramsay reject the proposal?
According to ASX announcement, Ramsay and its financial advisors have been in discussion with the consortium regarding the alternative proposal provided by the consortium on 13 September 2022. The discussion was done to understand if the consortium could provide a new proposal that would offer appropriate value to Ramsay shareholders.
Through engagement, it became clear that the consortium was not in a position to provide any new proposal. Therefore, both parties have agreed to terminate discussions mutually.
Details of the alternative proposal
On 20 April 2022, the consortium proposed to acquire the healthcare company for AU$88 cash per share, less distribution announced by the group after 31 January. Reportedly, AU$88 cash per share indicative proposal was withdrawn and shared an alternative proposal.
On 13 September 2022, Ramsay received an alternative non-binding, indicative, conditional proposal from the consortium to buy 100% shares in Ramsay through a scheme of arrangement.
The alternative proposal of the consortium included a 100% cash consideration of AU$88.00 per share for the first 5,000 Ramsay shares. The proposal took into account the most recent distribution to shareholders and proposed the consideration of AU$78.20 cash and around 0.22 Ramsay Sante shares for each Ramsay share above 5,000 shares.
Ramsay announced a dividend of AU$0.485 per share. The record date was 6 September 2022, and the tentative payment date is 29 September 2022. The dividend is 100% franked.
Share performance of Ramsay
Including today’s fall, Ramsay’s share price has dropped by nearly 10% in the last five trading sessions. In the month, the share price recorded a fall of 19.29%, and on a year-to-date basis, the share price fell by 20.83%. The yearly fall is 17.875, and in five years, it dropped 8.64% (as of 10:45 AM AEST).
The 52-week range of Ramsay is AU$56.100 to AU$84.580.
About Ramsay
Ramsay offers health care via a global network of research, clinical practice and teaching. The global network extends across ten countries with facilities in 532 locations.
In 1964, the company was founded by Paul Ramsay and was listed on the Australian Securities Exchange (ASX) on 24 September 1997.
