KKR makes USD 15bn approach for Ramsay Health Care

The GP has put forward a non-binding offer of AUD 88 per share for 100% of the company's capital, valuing it at around USD 14.8bn (EUR 13.6bn). The bid offers a 37% premium on Ramsay's share price at the last close of markets.

Europe accounts for over half the EBITDA and revenue across the whole group, with nearly EUR 760m EBITDA and EUR 5bn revenue in the year ended to June 2021.

Ramsay has substantial operations in France, the Nordics and the UK. It owns 52.79% of Euronext-listed Ramsay Santé, France's second-largest hospital group by revenue. 

Ramsay Santé itself took over Nordic-listed primary care group Capio in 2018 and is in the midst of a bid for local occupational healthcare specialist GHP Speciality.

KKR already owns a substantial 45% stake in Ramsay Sante's closest rival Elsan after it acquired the asset in a consortium in July 2020 for around EUR 3.5bn. Together the two companies account for around 40% of the French hospital market, according to media reports. 

One condition of KKR's takeover offer is that Ramsay does not dispose of any subsidiaries or properties. The group did say it continues to pursue a sale of its Asian joint venture Ramsay Sime Darby, as reported, with the due diligence provided on that basis. 

KKR expects to complete its due diligence on the takeover bid in around four weeks with the Ramsay Santé stake requiring a separate board decision, as reported by Unquote's sister publication Mergermarket.

The due diligence will determine whether KKR will put forward a binding offer, the firm said in a statement. 

The indicative proposal is also subject Ramsay shareholder approval, final approval of KKR's investment committee and other regulatory approvals.

Ramsay's largest shareholder the Paul Ramsay Foundation, with an 18.8% stake, is supportive of the bid, as reported. 

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