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Ramsay Health Care Ltd (ASX: RHC) is a global health care company mainly operating private hospitals. Ramsay health care has 480 facilities across 11 countries, which makes them one of the largest health care companies globally. Ramsay’s main markets are Australia, the United Kingdom and France. Its market capitalisation is $13.1 billion.
What is the news today?
Today (Tuesday 17 September 2019), Paul Ramsay Holdings Pty Ltd (known as the Paul Ramsay Foundation) sold 22 million ordinary shares in Ramsay Health Care to institutional investors at $61.80 per share.
Following this sale, Paul Ramsay Holdings Pty Ltd will continue to hold approximately 21 per cent of the issued share capital in Ramsay Health Care. The Paul Ramsay Foundation indicated that it has no intention to sell any further Ramsay Health Care shares over the medium to long term and does not possess any information that could materially impact on the price of Ramsay Health Care shares.
What is the market’s reaction?
Ramsey Health Care shares are trading at $61.80, down around 5 per cent following the announcement of the sale.
The important point is that there has been no change in Ramsay Health Care’s business activities and the outlook also remains unchanged. Further, the fundamentals of the private hospital industry remain unchanged. In particular, demand for hospital services is expected to have strong long term growth due to the aging population. Additionally, governments are fiscally constrained which is likely to limit public investment in hospitals and advancements in medical technology is opening new opportunities for medical treatment in hospitals.
Disclaimer:
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
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ASR has no position in any of the stocks mentioned.
