US private equity in $20 billion move for Ramsay Health Care

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Ramsay Health Care has responded to recent media speculation by confirming that it has received a takeover proposal from KKR that values the company at $20 billion.

Ramsay said that under the proposal, KKR is offering $88.00 per share in cash to acquire 100 per cent of the company that operates across 10 countries and has 72 private hospitals and day surgeries in Australia.

The acquisition is subject to a number of conditions, including the completion of satisfactory due diligence, no disposal of any of Ramsay’s subsidiaries or properties, the final approval of the consortium’s investment committee, entry into a scheme implementation deed on customary terms and conditions, regulatory approvals (including Foreign Investment Review Board) and Ramsay shareholder approval.

"Having reviewed the Indicative Proposal with its advisers and sought further information from the Consortium in relation to its sources of funding, structure and the regulatory approvals required to complete any transaction, the Ramsay Board of Directors (the Board) has determined it appropriate to provide the Consortium with due diligence on a non-exclusive basis to explore whether the Consortium can put forward a binding proposal that is in the best interests of Ramsay’s shareholders," said the company in a statement.

"The discussions between Ramsay and the Consortium are preliminary in nature," it said.