Portfolio Stock Update - KKR’s $88 bid for Ramsay Health Care (RHC)
Ramsay Health Care (RHC) has received a conditional, non-binding, indicative proposal from a consortium led by KKR, to acquire 100% of the shares in RHC for $88 per share in cash.
Marcus Bogdan, CIO of Blackmore Capital views the bid as opportunistic given that the unprecedented post COVID backlog of care, inherent value of established global hospital assets and greater dependency to private health care will drive medium to long-term earnings growth. If the acquisition goes through it would be one of the biggest leveraged buy-outs by a global private equity firm in Australia. RHC has underperformed the ASX200 by over 30% over the last five years and was impacted significantly by the pandemic. The share price rose by 25% yesterday post the announcement.