Ramsay Rejects KKR-Led Group Backup Plan in $14 Billion Takeover

Harry Brumpton, Bloomberg News

(Bloomberg) -- The KKR & Co.-led consortium that wants to take Ramsay Health Care Ltd. private confirmed its A$20.1 billion ($14 billion) bid, while putting forward an alternative plan that the takeover target said is inferior.

The consortium led by KKR hasn’t identified any matters that would cause it to terminate talks to buy Ramsay Health for A$88 per share, the health-care company said in a statement Thursday. The confirmation came more than four months since the KKR-led group first tabled its offer for Ramsay Health, which could be the private equity firm’s biggest ever acquisition in Asia Pacific.

Ramsay also rebuffed a proposal that would give shareholders a portion of equity in the company’s European operations.

The consortium has made a request to the Ramsay Santé board of directors for due diligence. However, there’s no guarantee that the Paris-listed firm, in which Ramsay Health owns 52.8%, will grant access to the suitors.

Ramsay also said the consortium offered an alternative structure that involves giving shareholders a portion of equity in Ramsay Santé. Ramsay shareholders could choose to receive all cash for their first 5,000 Ramsay shares, and for the excess, they will be offered A$78.20 cash each and about 0.22 Ramsay Santé shares.

“The Ramsay board has considered the alternative proposal and is unanimously of the view that it is meaningfully inferior,” it said in the statement. “The board has determined not to engage further with the consortium in relation to the alternative proposal on these terms.”

Ramsay will continue to engage with the KKR-led group on the original proposal and there’s no certainty that will result in a transaction.

Ramsay operates 72 private hospitals and day surgeries in Australia, making it the country’s largest private hospital operator, while running a network of more than 30 UK hospitals and day procedure centers. Ramsay also controls Ramsay Santé, which runs hundreds of clinics and primary care facilities across Europe, according to the company’s website.