Australia’s Ramsay Healthcare (RHC.AX) received a ‘significantly inferior’ alternative from a group led by KKR&Co (KKR.N) that would allow it to hold a 37% stake on Aug. 25 said. Investment in Paris-based unit Ramsay General de Santé (GDSF.PA).

Ramsay currently owns more than 52% of the shares of Paris-based Ramsay Generale De Sante (Ramsay Sante). If accepted, another proposal would give the consortium his 15% stake in the hospital operating company, with Ramsay’s shareholders holding the rest.read more

In April, a consortium including private equity giant KKR and Australian pension fund HESTA made a cash offer of A$88.00 per share (valued at around $15 billion), completing a non-exclusive due diligence. Regence allowed.

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However, that offer did not include any regular or special dividends to be paid or declared by Ramsay, which made the deal less attractive.

In an alternate tender, Ramsay shareholders are entitled to receive the full offer of A$88 per share for the first 5,000 shares. The consideration is then split between A$78.20 per his share and 0.22 Ramsay Santé shares.

Excluding dividends, the company said this meant that holding more than 5,000 shares would be worth A$84.93 per share.

In both cases, the cash amount of the offer is reduced because both offers do not include the value of any dividends or distributions paid or declared by Ramsay after January of this year. Ramsay declared an interim dividend of 48.5 Australian cents per share in February. (https://bit.ly/3ckSVJC)

“Ramsey’s board is considering alternatives and unanimously views them as significantly inferior to the consortium’s suggested offer of A$88.00 per share,” said Sydney-based Healthcare. The company said.(https://bit.ly/3Cq6JgC)

KKR and HESTA did not immediately respond to Reuters’ request for comment.

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Reported by Sameer Manekar, Bangalore.Edited by Krishna Chandra Elli

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