Shares in Ramsay Health Care Limited (ASX: RHC) finished in the green today despite the company facing delays to an ongoing acquisition proposal. The Ramsay share price closed up 1.34%, with shares in the private hospital operator trading for $64.39 apiece.
Let’s take a look at the latest news of the ongoing acquisition.
The latest on Ramsay’s acquisition
Today, Ramsay announced the shareholder vote for its proposed acquisition of UK-based private hospital operator Spire Healthcare has been pushed back a week. It will now take place on 19 July.
The Ramsay share price hasn’t noticeably reacted to today’s news.
The delay follows news Ramsay increased its cash offer for Squire yesterday. It also comes amid rumours members of Spire Healthcare’s board are against the acquisition.
Yesterday, Ramsay announced it has upped its acquisition offer by 10 pence to 250 pence per Spire Healthcare share. However, a shareholder’s vote needs to take place before the acquisition can go before a court hearing.
The court hearing is the final step Ramsay needs to pass before acquiring Spire Healthcare. It will now take place on 22 July.
Other news on Ramsay’s acquisition was published by The Australian today.
The publication claimed 2 of Spire Healthcare’s shareholders, Toscafund and Fidelity, who respectively hold 5.5% and 8.8% of Spire Healthcare’s outstanding shares, vehemently oppose the acquisition.
Toscafund’s CEO reportedly believes Ramsay’s offer undervalues Spire Healthcare.
Additionally, both companies supposedly opposing the acquisition have recently sold stakes in the UK’s Circle Health for a combined $3.5 billion. According to The Australian, they plan to spend some of the cash to battle Ramsay’s bid.
Ramsay needs the approval of at least 75% of Spire Healthcare’s shareholders to go ahead with the acquisition. It currently holds 30% of Spire Healthcare’s shares.
Ramsay Health Care share price snapshot
With today’s gains included, the Ramsay share price has grown 2.7% in 2021. It has also gained 1.9% since this time last year.
The company has a market capitalisation of around $14.4 billion, with approximately 228 million shares outstanding.
The post What was up with the Ramsay Health Care (ASX:RHC) share price today? appeared first on The Motley Fool Australia.
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More reading
- Ramsay (ASX:RHC) share price higher on bullish broker note
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- 5 worst-performing ASX 200 healthcare shares of FY21
- ASX 200 drops, Myer soars, Ramsay down
- ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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