KKR & Co trading information will be displayed on screens on the floor of the New York Stock Exchange (NYSE) in New York, USA on August 23, 2018. REUTERS/Brendan McDermid/File Photo

SEPTEMBER 26 (Reuters) – A consortium led by Australia’s Ramsay Healthcare (RHC.AX) and KKR & Co (KKR.N) has halted talks on a non-binding takeover offer, the hospital operator said. said on Monday.

The KKR-led consortium approached Ramsay with A$88 per share in cash in April, but withdrew the offer in late August after the company reported a 39% drop in annual profit.

The tender has been amended so that Ramsay shareholders are entitled to A$88 per share only for the first 5,000 shares, similar to the all-cash offer.

For investors with larger stakes, the split was A$78.20 per Ramsay share and 0.22 shares in French subsidiary Ramsay Generale de Santé (GDSF.PA). Ramsay described the alternative proposal as “meaningfully inferior”.

The consortium recognized that further engagement and access to further due diligence could provide some positive visibility, Ramsay said Monday.

The consortium noted that Ramsay’s fiscal 2022 results suggest significant downward pressure on its proposed valuation under the alternative.

KKR did not immediately respond to Reuters’ request for comment.

Reported by Harish Sridharan, Bangalore.Edited by Diane Kraft

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