Capio recommends Ramsay offer

Capio AB has withdrawn the proposed sale of its French operations to Vivalto Santé after its board recommended an improved offer for the entire business from Ramsay Générale de Santé’s (RGdS).

Ramsay Healthcare-owned RGdS upped its initial SEK 48.5per share offer to SEK 58 earlier this week, valuing Nasdaq Stockholmlisted Capio at €783m. In addition, it has lowered its minimum acceptance condition to 75% of shares and waivered the condition relating to approval from the French Competition Authority.

Shareholders had been due to vote on the €445msale of Capio’s 22-hospital strong French business on 18 October as part of a restructure to refocus the business on the Nordic region. The sale of its German business had also been on table, but Ramsay insisted its unsolicited offer for the entire business offered a better alternative for shareholders and would createa leading provider of healthcare services in Europe.

In a statement, Capio said: ‘The Board believes that the terms of the Increased Offer, including the significantly reduced execution risk as a result of the lowered acceptance level condition, substantially recognise Capio’s stand-alone value, taking into account a possible strategic positioning towards the Nordic markets.’

Ramsay CEO Craig McNally said: ‘We welcome the unanimous recommendation of the Capio board and look forward to working with shareholders to successfully complete this Offer and subsequently, with the Capio team, to create the leading private health care operator in Europe. Importantly, this transaction is financially compelling, providing the opportunity for substantial synergies for RGdS, as well as further acceleration of Ramsay’s global growth strategy.’

Other than the price per share, the waiver of the competition clearance condition and the lowering of the minimum acceptance condition to 75%, the terms and conditions for the Initial Offer remain unchanged. The acceptance period expires on 25 October 2018, subject to any extensions.