- Australian hospital operator Ramsay Health Care’s ( OTCPK:RMSYF ) shares dropped more than 10% after the company announced a KKR-led consortium ( NYSE: KKR ) is "not in a position to improve the terms" of a takeover proposal.
- A consortium led by KKR & Co ( KKR ), sent a letter to Ramsay chairman Michael Siddle on Monday night, reconfirming it would not offer $88 a share all cash for the company and could not increase its alternative proposal.
- Ramsay operates healthcare facilities across 10 countries and a successful acquisition of the company would represent one of the country's largest ever private equity buyouts.
- Ramsay’s board wanted KKR to increase its offer back towards $88 a share, which is where the group was granted due diligence, however KKR and its co-investors thought the business had materially deteriorated over the past six months and wouldn’t budge.
- Ramsay Health rejected the proposal earlier this year, saying the offer was "meaningfully inferior."
- Ramsay said in a statement on Tuesday that the KKR group had cited the company's weak business performance, adding it had been told the KKR group would discuss mutually acceptable terms if Ramsay was willing to reset valuation expectations and consider a new proposal.
- 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."
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Ramsay Health Care shares crash 14% after takeover talks crumble