© Reuters. FILE PHOTO: KKR & Co trading information is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo
(Reuters) – Australia’s Ramsay Health Care and a consortium led by KKR & Co (NYSE:) will end talks on a non-binding takeover proposal, the hospital operator said on Monday.
The KKR-led consortium first approached Ramsay in April with a cash offer of A$88 per share, but pulled it off the table in late August after the company reported a 39% drop in annual profits .
The offer was revised so that Ramsay shareholders would be entitled to A$88 per share as in the all-cash proposal, but only for the first 5,000 shares.
For investors with larger holdings, the offer was split into A$78.20 per Ramsay share and 0.22 shares of French subsidiary Ramsay Generale de Santé. Ramsay described the alternative proposal as “significantly inferior”.
The consortium recognized that deeper engagement and access to additional due diligence could provide some positive visibility, Ramsay said Monday.
The Consortium noted that Ramsay’s fiscal 2022 results imply significant downward pressure on the proposed valuation under the alternative proposal.
KKR did not immediately respond to a request for comment from Reuters.