Ramsay Health Care (ASX:RHC) confirms KKR $20b takeover bid

A consortium led by investment group KKR has put in a bid to Ramsay Health Care (ASX:RHC) at $88 per share which does not include dividends. However shareholders could expect a special dividend of $7.91 and an interim dividend of $0.49 which totals to $79.61 per share, Macquarie analysts said. 

The broker has previously cited upside value in the company’s onshore business with the bid highlighting the local operations and property portfolio value, assuming an implied 12.6 time earnings multiple for the Australian business. Due to this, Macquarie believes there is upside to the company’s share price citing “notwithstanding recent share price appreciation, we see further upside at current levels”, though notes that the deal completion weighs on its outlook, upgrading the company to outperform to neutral with an increased price target to $88.00 from $69.40.

Shares in Ramsay Health Care (ASX:RHC) closed 3.7 per cent higher to $82.99.