Hi, I'm Daniel. Welcome to this edition of the Hot Performer show. In today's show, we'll
be throwing some light on ASX listed Ramsay Health Care. The company has received a takeover
offer from a consortium led by United States top private equity group KKR. We will also
see how Ramsay shares are performing over the announcement.
On Wednesday, Ramsay Health Care confirmed receiving a takeover offer from a consortium
led by private equity group KKR. KKR is a leading global investment firm that offers
alternative asset management, capital markets, and insurance solutions. The consortium has
offered a bid of AU$88 per share, a premium of 36.7 percent.
Ramsay stock closed at AU$64.39 on Tuesday and the company was valued at AU$14.8 billion
as of Tuesday's closing price. Its share price surged nearly 30 percent from the previous
day's close following the release. In the early morning trading hours, the stock was
up 27.35 percent at AU$82. The stock is up nearly 15 percent on a year-to-date basis.
In the past one year, Ramsay Health Care stock has gained over 23 percent. The 52-week high
of the stock stands at AU$83.55 and the low at AU$59.66. In the past month, the stock
was up over 30 percent. Ramsay Health Care owns over 230 hospitals, treatment facilities,
psychiatric and rehabilitation units, day surgery centres and a nursing college across
five countries - Australia, France, the United Kingdom, Italy, Indonesia, and Malaysia.
Coming back to today’s announcement.
Ramsay said it has received a conditional, non-binding, indicative proposal from a consortium
of investors led by KKR to acquire 100 percent of the company. The company said in its
latest ASX filing that Ramsay shareholders would be entitled to receive AU$88 per share
cash, less any ordinary or special dividends paid to shareholders after the date of the
Indicative Proposal, including the ordinary dividend of AU$0.485 per share paid on 31
March 2022. According to the release, the shareholders would have an option to receive
part of the consideration in unlisted scrip in the consortium holding entity. In case
of the scheme of arrangement gets implemented, Ramsay would be permitted to pay a fully franked
special dividend to distribute all available franking credits to shareholders. However,
Ramsay's board also cautioned the discussions between the participants are preliminary with
no guarantee of a deal.
And before we wrap, lets look at Ramsay's half-year results.
The COVID-19 pandemic severely impacted the firm's earnings in the half-year ended 31
December 2021. This resulted in profit before tax declining 1.3 percent compared to the
previous corresponding period, while statutory profit declined 29.7 percent. As per the company,
the total impact of the COVID-19 pandemic was pegged at AU$107 million. The company
acquired mental healthcare provider Elysium in January 2022.
Well, that's all for now from this edition of the Hot Performer show. Meanwhile, keep
watching Kalkine TV for the latest market and business news.