Ramsay Health, a group led by KKR, said it would not be willing to revise the $14.5 billion offer.

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KKR & Co. trading data is seen on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., Aug. 23, 2018. REUTERS/Brendan McDermid

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September 13 (Reuters) – led by KKR (KKR.N) The consortium spoke to Australia’s Ramsay Healthcare. (RHC.AX) It would not improve the nearly $14.5 billion cash and stock offer for the hospital operator, a move that would put the deal on ice.

Shares in Ramsey, which has signaled its dissatisfaction with the terms, slipped more than 10% on the news. A deal, if successful, would be one of the largest private equity buyouts in the country.

In late August, the consortium, whose members include Australian pension fund HESTA and the Abu Dhabi Investment Authority, took $88 per share off the table.

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Instead, the bid revised Ramsay shareholders to $88 per share — the same as the all-cash proposal — but only for the first 5,000 shares.

For investors with large shares, the offer was paid at $78.20 per share in Ramsay and 0.22 per share in France’s Ramsay General de Sante. (GDSF.PA). Ramsay described the alternative proposal as ‘significantly low’.

Ramsey said on Tuesday that the union cited the hospital operator’s poor performance in the last operating year.

“The Ramsey board has not yet considered the correspondence received last night … but there is no doubt that any further proposals will be forthcoming or any proposals will result in a transaction,” he added.

The KKR team will discuss mutually acceptable terms if Ramsey considers a fresh proposal to reset valuation prospects, the statement said on Tuesday.

KKR declined to comment.

Ramsay shares were last down 10.6% at A$62.80.

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Reporting by Sameer Manekar in Bengaluru and Scott Murdoch in Hong Kong; Editing by Edwina Gibbs

Our standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Scott Murdoch has been a journalist for over two decades, working at Thomson Reuters and News Corporation in Australia. He specializes in financial journalism and covers equity and debt capital markets across Asia based in Hong Kong.

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