German hospital firm Asklepios to takeover Rhoen to vie with Fresenius (updated)
28/02/2020 17:51
(Releads, adds background)
FRANKFURT, Feb 28 (Reuters) - Unlisted German hospital chain
Asklepios outlined plans to take over peer Rhoen Klinikum
RHKG.DE in a 1.2 billion euro ($1.3 billion) deal, a move that
would help it compete with larger rival Helios, a unit of
Fresenius FREG.DE .
Asklepios, which already holds 28.7% of Rhoen's shares, said
on Friday it would initially buy a 12.4% stake from Rhoen
founder Eugen Muench. The two would then pool Muench's remaining
stake of 7.6% in Rhoen with shares held by Asklepios.
As a result, their joint investment company would hold at
least 49% in Rhoen.
Asklepios, which is owned by 76-year-old founder Bernard
Broermann, will also make a takeover offer for all remaining
shares in Rhoen for 18 euros apiece and intends to transfer
these shares into the joint company, the hospital chain said.
The offer price of 18 euros per share is 22% above
Thursday's closing price of 14.72 euros.
A spokeswoman for Rhoen Klinikum declined to comment.
Rhoen, Asklepios and the larger Fresenius unit Helios
compete as buyers of underfunded public-sector hospitals from
debt-laden German municipalities.
Eugen Muench tried to sell Rhoen to Fresenius in 2012 but
Broermann, fearing a dominant rival, amassed a big enough stake
in Rhoen to block the deal, sparking a bitter feud between
Broermann and Muench.
Fresenius still managed to bulk up by agreeing to buy about
two thirds of Rhoen's assets in a deal that did not require
shareholder approval.
($1 = 0.9201 euros)
(Reporting Alexander Huebner; Writing by Ludwig Burger and Tom
Sims; Editing by Michelle Martin and Edmund Blair)
((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters
Messaging: ludwig.burger.thomsonreuters.com@reuters.net))