Ramsay Health Care JV Bids For France's Generale de Sante

   By Robb M. Stewart 
 

MELBOURNE, Australia--Australian hospital operator Ramsay Health Care Ltd. (RHC.AU) and its French joint venture partner are in exclusive talks to buy Generale de Sante SA (GDS.FR), a listed healthcare services company with 75 centers and 19,000 employees.

In a regulatory filing Monday, Ramsay said it has teamed up with insurer Credit Agricole Assurances to make a nonbinding offer of EUR16.75 (US$23.06) a share for the slightly more than 83% of Generale de Sante held by Sante SA and Sante Developpement Europe SAS.

If the deal goes ahead, Ramsay would pay up to EUR539 million for 57% of the shares picked up in the French company--the same percentage it holds in its Ramsay Sante venture with Credit Agricole. The acquisition would be debt funded, it said.

Sante and Sante Developpement have granted the suitors until June 6 to undertake exclusive due diligence and make a binding bid. A transaction is subject to a number of conditions, including approval from antitrust authorities, and would under French laws lead to the joint venture bidding for the remaining stake in Generale de Sante.

Generale de Sante is a leading healthcare company in France, with annual revenue of about EUR1.7 billion from operations including surgery, obstetrics, oncology and home medical services.

The bid comes just days after Paul Ramsay, who founded Ramsay Health Care in 1964, died after suffering a heart attack. The company operates 151 hospitals and day surgery facilities across Australia, the U.K., France and Asia.

Write to Robb M. Stewart at [e-mail]

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