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AAP
AAP
Business
Derek Rose

Ramsay Health Care buyout collapses

A $20 billion offer from a US private equity consortium to buy out Ramsay Health Care has collapsed. (PR HANDOUT IMAGE PHOTO) (AAP)

What would have been Australia's biggest business deal of the year is officially dead, after being on shaky ground for awhile.

A consortium led by US private equity group Kohlberg Kravis Roberts had offered $20 billion for Ramsay Health Care, Australia's largest private hospital chain.

But the group backed away from its original $88-per-share offer last month after Ramsay's 2021/22 results showed a 21 per cent drop in earnings, to $891.2 million.

There had been further talks lately but the ASX50 component said in a statement to the ASX on Monday that the consortium wasn't able to provide a new proposal at this time.

"While the Ramsay Board remains open to engaging in relation to a change of control proposal that provides appropriate value for shareholders and has sufficient certainty of completion in a reasonable timeframe, it is apparent that this is unlikely to be forthcoming in the near future," Ramsay said in a statement.

"The Ramsay Board and the Consortium have mutually agreed to terminate discussions."

Ramsay owns 73 private hospitals, clinics and day surgery units in Australia, admitting more than 1 million patients and employing 31,000 people. It operates in nine other countries.

At 1.51pm AEST, Ramsay shares were down 2.5 per cent to $58.99.

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