KKR-led team abandons $15 billion all-cash offer for Australia’s Ramsay According to Reuters

© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS / Brendan McDermid

(Reuters) -Ramsay Health Care Ltd said on Friday a group led by private equity giant KKR & Co (NYSE:) has pulled the plug on an offer to buy back nearly $15 billion in all cash to the Australian hospital operator, but a cash and stock tender. still on the table.

On Thursday, Ramsay received an alternative proposal from the KKR-led consortium under which its shareholders would be entitled to the full AU$88 per share for the first 5,000 shares.

For investors with larger shares, the offer will be split into A$78.20 per Ramsay share and 0.22 shares of Ramsay Sante, its French healthcare subsidiary. New incentives worth $14.5 billion.

Ramsay rejected the offer, calling it “meaningfully inferior”. The company’s shares were down 4.5% when trading resumed on Friday.

Ramsay said KKR has announced that all cash offers have been withdrawn.

In a statement, Ramsay said it would not be negotiating with KKR and its advisors on the proposed replacement but was open to engaging with the acquiring company.

“Ramsay is ready to engage with the Association to determine if it can deliver an improved binding proposal that Ramsay Council is capable of proposing.”

KKR declined to comment.

The decision to forgo the cash offer came after KKR and its advisors were unable to perform due diligence on Ramsay Sante, according to two sources with direct knowledge of the matter who could not be named because of the information. has not been made public.

One of the sources added that the replacement proposal was presented to Ramsay’s board in mid-June.

Ramsay did not immediately respond to a request for comment on when the proposal was received.

(1 dollar = 1.4362 Australian dollars)

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