R1 RCM majority shareholders consider taking company private (updated)

R1 RCM

26/02/2024 21:21

(Adds comments from Coliseum Capital in paragraphs 3 & 4)
       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 as much as 31%.
    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.
    Coliseum Capital Management LLC, one of the five largest
shareholders, in an open letter to the company's board said it
believes the offer "significantly undervalues" the company.
    The shareholders said the board should "require a materially
higher price, or reject the offer and stay the course as a
public company."
    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, Bhanvi Satija and Sriparna Roy
in Bengaluru; Editing by Maju Samuel)
 ((Christy.Santhosh@thomsonreuters.com;))