R1 RCM majority shareholders consider taking company private

R1 RCM

26/02/2024 16:43

Feb 26 (Reuters) - A group of R1 RCM's  RCM.O  investors
is considering taking the healthcare services provider private,
according to a regulatory filing on Monday, sending shares of
the company up 30%.
    The investor group, led by equity firm New Mountain Capital,
said it had submitted a draft proposal to acquire all of the
Utah-based company's outstanding shares not currently owned by
the investors for a proposed price of $13.75 per share in cash.
    The company's shares rose to $14.43 in early trading.
    New Mountain Capital and its affiliates also disclosed that
they have been in discussions with investment vehicle TCP-ASC
regarding the proposed take-private offer.
    TCP-ASC is jointly owned by TowerBrook Capital Partners and
Ascension Health Alliance.
    New Mountain Capital holds a 32.43% stake in R1 RCM, while
TowerBrook has a 29.64% stake, according to LSEG data.
    "While there is not final agreement on terms as of this
date, these discussions remain ongoing and there is active
dialogue," the investor group said in a filing.
    According to the filing, RCM is discussing the request and
there is no final agreement on terms. R1 RCM did not immediately
respond to a Reuters request for comment. 

 (Reporting by Christy Santhosh and Bhanvi Satija in Bengaluru;
Editing by Maju Samuel)
 ((Christy.Santhosh@thomsonreuters.com;))