- Wall Street Journal reported that a KKR & Co Inc (NYSE:KKR)-led consortium offered to buy Australian hospital operator Ramsay Health Care Ltd (OTC:RMSYF) (OTC:RMYHY) for roughly $14.9 billion.
- Ramsay is Australia’s largest private hospital operator and operates in the U.K., France, Scandinavia, Malaysia, and Indonesia.
- In Australia’s private hospital sector, Ramsay has 28% of beds, double the market share of Healthscope, its next-largest rival, analysts say.
- Ramsay said it had received a nonbinding, indicative proposal from a consortium to acquire the company for A$88 or about $65 a share in cash. The stock closed Tuesday at A$64.39.
- Australia-listed Ramsay said the consortium had requested confidentiality but that it disclosed the proposal because of media speculation. The Australian Financial Review reported the approach late Tuesday.
- KKR has several Australian investments, including a 55% stake in wealth manager Colonial First State Investments Ltd, which held a 0.28% interest in Ramsay on March 31.
- Its Australian healthcare assets include oncology specialist GenesisCare.
- Ramsay said the talks with KKR were preliminary and that the consortium could withdraw the proposal now that it was no longer confidential.
- The consortium includes sovereign-wealth funds, international and local investors, including Hesta superannuation fund, a person familiar with the matter said.
- Price Action: KKR shares closed 3.45% higher at $56.43 on Tuesday.
