Hold out shareholders have forced Ramsay Healthcare to lift its offer price for Sweden’s Capio by nearly 20% to more than $1.2 billion.
Ramsay will have to fund the new higher offer to the tune of $A515 million from finance facilities already in place.
Ramsay said last night that its French hospital operator unit, Ramsay Générale de Santé, had lifted its cash bid for Sweden’s Capio to 58 Swedish crowns per share from 48.50 crowns.
The bid values Capio at $A1.284 billion at 58 crowns a share, up from $A1.041 billion at 48.50 crowns in the original offer back in July.
Ramsay also said it had decided to waive a bid condition regarding clearances from competition authorities, while adding they expected clearance from the French Competition Authority to be obtained by October 15.
Capio shares closed at 50.80 crowns on Friday.
Capio has healthcare operations in five countries – Sweden, Denmark, Norway, Germany, and France, with sales totaling approximately €1.6 billion and EBITDA of €116 million.
Ramsay said in launching the bid in July that the combined entity of RGdS and Capio “would become a leading private pan-European healthcare services operator with a strong focus on operational excellence. The combined group would deliver high quality, innovative care to patients and be an attractive workplace for doctors and employees.”
Ramsay said RGdS has secured on a “certain funds” basis both debt funding and equity commitments for the Offer, including the Increased Consideration.
“The Increased Consideration has increased the total value of the Offer by SEK1,341 million and RGdS will fund this by drawing down additional debt under its own new incremental debt facility and increasing the total equity commitments by €100 million.
In relation to RGdS’s planned equity raising, Ramsay has increased its irrevocable commitment to subscribe for its pro rata share of the proposed equity raising by €57 million ($US93.5 million to €314 million ($A515 million.
Ramsay said it will fund its pro rata share of the equity raising by using its Euro-denominated debt facilities, including a recently executed debt facility which may only be used in connection with the Capio acquisition.
The acceptance period expires on October 25, although RGdS has reserved its right to extend the acceptance period.
Ramsay shares were unchanged at $55.72 yesterday in a market that slumped 1.4%.
