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KKR-led consortium → Ramsay Health Care Limited

withdrawn
Deal announced2022-04-20
BuyerKKR-led consortium
SellerRamsay Health Care Limited
SectorHealthcare
ValueA$20.1B
Deal typePE

A KKR-led consortium made a non-binding indicative proposal to acquire all shares in Ramsay Health Care, Australia's largest private hospital operator, for $88.00 cash per share. The consortium withdrew the bid in September 2022 after failing to agree revised terms with the Ramsay board.

Why the buyer wanted it

KKR was attracted to Ramsay's scale as a global private hospital operator and defensive healthcare cash flows at a time of depressed valuations for listed hospital operators post-COVID.

Why the seller agreed

Ramsay's board initially engaged with the proposal as it represented a substantial premium to the undisturbed share price, but ultimately rejected KKR's revised, lower-value alternative offer as "meaningfully inferior" after Ramsay's earnings fell.

Stock reaction

Ramsay shares jumped about 28% on the initial bid announcement, a roughly 37% premium to the prior closing price of $64.39; shares fell back toward pre-bid levels after the consortium withdrew in September 2022.

Deal mechanics

Deal structure

Proposed all-cash offer of $88.00 per share, later revised to a cash-and-scrip alternative involving Ramsay Générale de Santé shares

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