KKR Led Consortium Offers To Buy Australia's Largest Private Hospital Operator: WSJ

  • Wall Street Journal reported that a KKR & Co Inc KKR-led consortium offered to buy Australian hospital operator Ramsay Health Care Ltd RMSYF 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.
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