Ramsay Health Care is progressing with its plan to separate its stake in its European hospital business, Ramsay Santé. According to Citi analyst Laura Sutcliffe, the company has established a “baseline plan” to execute the separation through an in-specie distribution to shareholders. Ramsay Health Care is a global hospital group operating across multiple countries, providing a range of healthcare services. Ramsay Santé is its European division, managing a network of hospitals and healthcare facilities.
The proposed demerger is anticipated to be put to a shareholder vote in November. Subject to shareholder approval, the transaction is expected to be completed by the end of the year. The shares will be listed as depository interests and traded on the Australian Securities Exchange (ASX).
While the demerger is the current plan, Sutcliffe noted that the Ramsay Health Care board could still consider “superior alternatives,” such as a sale of its stake in Ramsay Santé. Sutcliffe anticipates a positive market reaction to the announcement. She also notes that the tax implications are not yet known, and the outcome is partially factored into Citi’s model and valuation of Ramsay Health Care.
