KKR Scraps A$14.5B Takeover Bid Of Australia's Ramsay Health Care

Talks regarding KKR & Co KKR-led consortium buying Australian hospital operator Ramsay Health Care Ltd RMSYF RMYHY have fallen apart.
The consortium sent a letter reconfirming it would not offer A$88 a share and could not increase its alternative proposal.
In April this year, a KKR-led consortium offered to buy Ramsay Health Care Ltd for roughly $14.9 billion.
The bid was revised so Ramsay shareholders would be entitled to A$88 per share as in the all-cash proposal but only for the first 5,000 shares.
For investors with larger stakes, the offer was split into A$78.20 per share in Ramsay and 0.22 share in French subsidiary Ramsay Generale de Sante. Ramsay described the alternative proposal as "meaningfully inferior."
Ramsay's board wanted KKR to increase its offer. However, KKR and its co-investors cited reviewing Ramsay's FY22 result implying downward pressure on valuations. They noted that it is not in a position to improve the terms of the Alternative Proposal.
The letter also stated that if Ramsay Board is willing to reset valuation expectations and consider a new proposal, the consortium will move quickly to discuss mutually acceptable terms.
Ramsay said it had yet to consider the group's response, noting "there is no certainty that any further proposal will be forthcoming or that any proposal would result in a transaction."
Ramsay shares on the Australian stock exchange fell almost 11%.
Price Action: KKR shares closed higher by 2.29% at $52.68 on Monday.

Overview Rating:

Speculative

100

0100