In today’s briefing:
- Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer
- Kalbe Farma (KLBF IJ) – Fuelling Health Consciousness in Indonesia
Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer
- KKR has all-but-abandoned its A$88/share cash offer for Ramsay Health Care (RHC AU), Australia’s largest private hospital group.
- KKR’s alternative proposal involves $88/share for the 5,000 RHC shares, followed by A$78.20/cash + 0.22 Ramsay Generale de Sante (GDS FP) shares thereafter – or an indicative value of A$84.93/share.
- Despite announcing horrible annual results, Ramsay’s board considers the alternative proposal to be meaningfully inferior to the KKR’s indicative proposal of $88.00/share.
Kalbe Farma (KLBF IJ) – Fuelling Health Consciousness in Indonesia
- Kalbe Farma (KLBF IJ) results reflected its resilience in the face of inflationary pressure, with decent growth across all four core divisions with some manageable margin pressure.
- The company raised prices by +3-5% in 1H2022 to offset raw material price increases and may increase a further +1%-3% in 2H2022 in a selective fashion to maintain margins.
- Kalbe Farma remains confident in the guidance of +11%-15% growth in sales and EPS for FY2022E and remains an interesting play on increasing health consciousness in Indonesia on attractive valuations.
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