A KKR-led consortium of financial investors’ bid to buy Ramsay Health Care appears to have proven unsuccessful after it was unable to improve the terms of its offer.
Last month Health & Protection reported that the consortium had pulled out of a A$20bn (£11.7bn) bid to buy Ramsay Health Care.
The Australian healthcare provider confirmed it had been told by the consortium that it will no longer seek due diligence on Ramsay Santé, Ramsay’s European division, and had advised the board of Ramsay Santé accordingly.
Ramsay Santé due diligence was required for the sale to proceed and the consortium informed the hospital group that it had withdrawn its proposal.
However, the consortium also indicated that it remained committed to an alternative proposal.
Under the alternative proposal, Ramsay shareholders would have been able to elect to receive 100% cash consideration of $88.00 cash per share (less dividends declared or paid after 31 January 2022) for their first 5,000 Ramsay shares.
As stated in announcements on 25 and 26 August 2022, the Ramsay board considered the alternative proposal and determined not to engage further on it.
The latest correspondence received from the consortium referred to its review of Ramsay’s full year results announcement and stated that it was not in a position to improve the terms of the alternative proposal.
The consortium recognised further engagement and access to due diligence may provide some positive visibility, but said the information provided in the results implied that there was “meaningful downward pressure” on the valuation proposed under the alternative proposal.
The correspondence also stated that should the Ramsay board be willing to reset valuation expectations and consider a new proposal, the consortium would move quickly to discuss mutually acceptable terms.
The Ramsay board revealed it was yet to consider the correspondence which was received late on the evening of 12 September and appeared in media reports early on the morning of the 13 September, but added there was no certainty that any further proposal would be forthcoming or that any proposal would result in a transaction.
Ramsay added it remained focused on its business, driving its strategy to be a leading integrated healthcare provider of the future and the creation of long-term value for shareholders.