A KKR led group has withdrawn a $13bn bid for Australian hospital operator Ramsay Health Care after talks hit a stalemate, killing Australia’s biggest deal of the year and sending the target’s shares tumbling.
The would-be buyers had proposed paying A$88 per share in cash for the company in April, but cut the cash component in August after Ramsay reported a worse than expected 39% slump in annual profit, blaming COVID-19-related staffing problems.
Shares of Ramsay fell as much as 7% in morning trading, against a 2% decline on the broader market (.AXJO), as any remaining hopes a deal might eventuate evaporated. The stock was last trading at A$57.64, one-third below the initial indicative buyout price which Ramsay’s biggest shareholder had supported.
Read more: Reuters
