(Reuters) Shares of Australian Ramsay Health Care Ltd soared up to 30% on Wednesday after a group led by KKR & Co. made a $14.8 billion offer.
The talks for the offer are in the preliminary stage, with Ramsay saying that it would provide KKR consortium due diligence on a non-exclusive basis.
The deal values Ramsay at A$88 cash per share, which is almost 37% premium to the stock’s closing price on Tuesday of A$64.40. The deal carries an enterprise value of A$28 billion, including debt.
The share offer also carries forward earnings multiple of 33 times versus an average of 17% for its peers.
The deal for Ramsay comes amid a growing appetite for healthcare and infrastructure assets in an environment of record-low rates.
The 30% jump in Ramsay stock is the highest in almost six years, and it’s the biggest intraday gain.
If the takeover deal is successful, it would be the biggest private-equity backed buyout for an Australian company. The deal would also be the biggest in Australia this year.
KKR: NYSE is up +1.01% on premarket, RHC: ASX is currently up +24.24%
