RHC - Ramsay Health Care

[JTLP]

It was the anethatist that I was upset about. Really ripped. Understand completely why people are going public.

You don’t think about these services when your partner is in pain, but that pain passes. What doesn’t is the sting from these extra “helpers”.

 

[notting]

Fallen through what looked like it may have been a blow off low last week.
So unless some buyers step up fast, stop out for short term.
Still has high PE and is not expected to perform in the short term, but still longer term great place to be.

 

[galumay]

I had a bit of a look as it had got cheap enough to pique my interest. The debt is the issue for me, its outside my zone of confidence.

 

[Dona Ferentes]

Ramsay Health Care says the latest restrictions on elective surgeries in the omicron-hit states of NSW and Victoria may have a material impact on its full-year results if they are as prolonged as the restrictions during last year’s delta outbreak.

Ramsay operates 72 private hospitals in Australia and has market share of about 30 per cent of private hospital procedures in NSW, about 18 per cent in Victoria, and about 27 per cent in Queensland and Western Australia.

(..... in response to rising COVID 19 cases in NSW, restrictions on non-urgent overnight Category 2 and Category 3 elective surgery are to be introduced on all private hospitals in NSW effective 10 January 2022.
.... and changes by Victorian Department of Health and Human Services to the surgical restrictions imposed in that state, that were effective immediately, Thursday 6th January. Elective surgery is now restricted to urgent elective surgery procedures, including Category 1 admissions in [nearly] all private hospitals and day procedure centres, state-wide )

 

[Dona Ferentes]

the complexity of the deal might see it take a while. And is there any likelihood of a second bidder? RHC closed at $64.39 last night

In response to the recent media speculation, Ramsay Health Care Limited (RHC) confirms that it has received a conditional, non-binding, indicative proposal from a consortium of financial investors led by KKR to acquire 100% of the shares in Ramsay by way of a scheme of arrangement.

Under the Indicative Proposal, Ramsay shareholders would be entitled to receive A$88.00 per share cash, less any ordinary or special dividends paid to shareholders after the date of the Indicative Proposal (including the ordinary dividend of $0.485 per share paid on 31 March 2022). Ramsay shareholders would have the option to receive part of the consideration in unlisted scrip in the Consortium holding entity.

If the scheme of arrangement were implemented, Ramsay would be permitted to pay a fully franked special dividend to distribute all available franking credits to shareholders. The franking account balance as at 31 December 2021 (prior to the payment of the FY22 Interim Dividend) was $823 million.

The Indicative Proposal is subject to a number of conditions, including (but not limited to):
• completion of satisfactory due diligence;
• no disposal of any of Ramsay’s subsidiaries or properties;
• final approval of the Consortium’s investment committee;
• entry into a scheme implementation deed on customary terms and conditions;
• regulatory approvals (including Foreign Investment Review Board); and
• Ramsay shareholder approval.

 

[Garpal Gumnut]

the complexity of the deal might see it take a while. And is there any likelihood of a second bidder? RHC closed at $64.39 last night

In response to the recent media speculation, Ramsay Health Care Limited (RHC) confirms that it has received a conditional, non-binding, indicative proposal from a consortium of financial investors led by KKR to acquire 100% of the shares in Ramsay by way of a scheme of arrangement.

Under the Indicative Proposal, Ramsay shareholders would be entitled to receive A$88.00 per share cash, less any ordinary or special dividends paid to shareholders after the date of the Indicative Proposal (including the ordinary dividend of $0.485 per share paid on 31 March 2022). Ramsay shareholders would have the option to receive part of the consideration in unlisted scrip in the Consortium holding entity.

If the scheme of arrangement were implemented, Ramsay would be permitted to pay a fully franked special dividend to distribute all available franking credits to shareholders. The franking account balance as at 31 December 2021 (prior to the payment of the FY22 Interim Dividend) was $823 million.

The Indicative Proposal is subject to a number of conditions, including (but not limited to):
• completion of satisfactory due diligence;
• no disposal of any of Ramsay’s subsidiaries or properties;
• final approval of the Consortium’s investment committee;
• entry into a scheme implementation deed on customary terms and conditions;
• regulatory approvals (including Foreign Investment Review Board); and
• Ramsay shareholder approval.

KKK and Barrenjoey their bagmen in Australia for the RHC takeover, debt and Co/Prop arranging are appearing with increasing frequency in the Private Schoolboys Gazette, the AFR.

I awoke from a well earned snooze at 3.30pm this afternoon to see and buy a few more RHC to add to my holdings, as there seemed to be movement in the maternity ward.

It's a 50/50 bet, deal goes through gain about $10, deal doesn't lose $10 a share. It seems a few others shared my thoughts from the volume.

The 5 day chart is interesting. So many balls in the air, so few know if it is a goer or not.

Or do they?

gg

 

[Garpal Gumnut]

RHC is one of the very few of mine to be in the green atm. today.

Hopefully another offer eventuates, although I doubt it.

KKR seems to be set on recent trading to takeover at $88.

gg

 

[Garpal Gumnut]

HA HA.

Half a million dollars worth of shorters got their bums burnt in the first 30 minutes of trading RHC.

Davos starts today so they'll be shifting some of the geriatrics caught in flagrant delecto with hookers and having heart attacks over to some proper hospitals owned by RHC in France.

I may have another small bite.

gg

 

[Dona Ferentes]

• Profit before tax down 25.1 per cent to $538.5 million
• Sales up 3.1 per cent to $13.74 billion.
• Final fully franked dividend of 48.5cps
• Total dividends per share fell 39.7 per cent to 97¢ per share on earnings down 39.7 per cent to $1.16 per share.

It said underlying earnings growth in FY 2023 will benefit from additional capacity and recent European acquisitions.

This week private equity group KKR proposed an alternative takeover structure to Ramsay, with the board calling it “meaningfully inferior.”

 

[Dona Ferentes]

KKR has pulled its $88 a share all-cash offer Ramsay Health Care, and told the company it would like to discuss its alternate proposal in more detail.

.... consortium of deep-pocketed funds and having been unable to gain access to due diligence at Ramsay’s operations in France, wants to acquire Ramsay’s Australian operations and spin its 52.8 per cent holding in France’s Ramsay Sante back to Ramsay investors.

....... down about 7%, to under $68

 

[Garpal Gumnut]

Predictably following KKR taking their bid away RHC has fallen over 10% this morning.

I'm surprised the volume is not a bit higher.

Who knows, there may be a plan B.

gg

 

[Miner]

KKR has pulled its $88 a share all-cash offer Ramsay Health Care, and told the company it would like to discuss its alternate proposal in more detail.

.... consortium of deep-pocketed funds and having been unable to gain access to due diligence at Ramsay’s operations in France, wants to acquire Ramsay’s Australian operations and spin its 52.8 per cent holding in France’s Ramsay Sante back to Ramsay investors.

....... down about 7%, to under $68

Another +10 % down today.
What's there tomorrow?

 

[Miner]

Predictably following KKR taking their bid away RHC has fallen over 10% this morning.

I'm surprised the volume is not a bit higher.

Who knows, there may be a plan B.

gg

Did u predict KKR bid was a stunt ?

 

[DrBourse]

Hi Miner…….RHC as requested…..

Did not even get my slide rule for this mob….

A quick look at their FA scared me…. Then a quick look at the RHC Chart convinced me I should not waste my time…..

The RHC Chart below shows they are trapped in a sideways pattern within that 13/9/22 Gap Down…

Cannot see favourable TA Signs atm…..

Sorry M8 – RHC are now at the BOTTOM of my Hit List, not that they have ever been on any of my past Hit Lists.

Cheers…

DrB.

 

[DrBourse]

Just checked RHC again - Could I Be Wrong - Nah, RHC were abt the same price back in early Feb 2015 - perhaps I was too nice towards RHC in my last post.

 

[Hitchcock_D]

From KKR: Ramsey Health, one of the leading healthcare companies, has recently embarked on its largest and most expensive project - its digital strategy. However, there are growing concerns about the project's success as it has been reported that the project is staffed with inexperienced team leads. This raises questions about the project's performance and the potential impact on the company's stock price. Investors should closely monitor the situation and evaluate the potential risks and rewards before making any investment decisions related to Ramsey Health's stock.

 

[Hitchcock_D]

From KKR: Ramsey Health, one of the leading healthcare companies, has recently embarked on its largest and most expensive project - its digital strategy. However, there are growing concerns about the project's success as it has been reported that the project is staffed with inexperienced team leads. This raises questions about the project's performance and the potential impact on the company's stock price. Investors should closely monitor the situation and evaluate the potential risks and rewards before making any investment decisions related to Ramsey Health's stock.

Apparently they brought in a team of bankers? Instead of digital health experts

 

[Miner]

Apparently they brought in a team of bankers? Instead of digital health experts

They brought bankers so as to know the market rates to pay for the real digital experts to lift the game.
Probably they have to ready to pay like Ronaldo and not at the same rate of Socceroo.

 

[Dona Ferentes]

This time last year, the group was still in buyout talks with suitor KKR. That fell over in September, but it seems the fallout is still playing out. Ramsay had a tough earnings day, shedding 12 per cent. Shareholders will only get a 25¢-a-share final dividend, which was one-third of what some analysts expected, as the company opted to retain funds to shore up its balance sheet.

While some thought the FY23 numbers looked OK, these were behind forecasts as the COVID-19 bounceback in surgeries was slower than expected. Importantly, there was no operational guidance, the company flagged higher interest costs and analysts were rethinking their FY24 forecasts. The shares are now down 33 per cent in the past year, to be trading below where they were in the pandemic.

 

[Dona Ferentes]

Who knows, there may be a plan B.

Ramsay Health Care (ASX:RHC) had finally sold its Malaysian and Indonesian hospitals owned in partnership with Malaysian conglomerate Sime Darby for 5.7 billion ringgit or $A1.9 billion.

The buyer is Columbia Asia Healthcare, a company controlled by private equity group, TPG and a Malaysian conglomerate, Hong Leong Group.

- Took 2 years