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Post Market Wrap | Cash offer for Ramsay Health Care shares lodged by KKR led Consortium

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A $88 cash offer for Ramsay Health Care shares lodged by KKR led Consortium

  • Offer price values Ramsay at A$20.1B and is a 37 percent premium to last traded share price  
  • Ramsay Foundation, a 20 percent shareholder, is supportive of Consortium offer
  • Consortium undertaking due diligence to enable binding offer to be put to shareholders
  • Offer has Board approval, and a subsequent binding offer is likely to receive shareholder support.

Ramsay Health Care Limited (Ramsay or the Company) is Australia’s largest private hospital operator, owning 72 private hospitals. Founded in 1964 by Paul Ramsay, the Company listed on the ASX in 1997 and employs 86,000 people globally, across 10 countries, in over 460 locations. 

Ramsay’s global operations are spread across four regions, including Australia. Ramsay Santé is Europe’s second largest private care provider, operating from over 350 locations that employ 36,000 staff. Ramsay UK has a network of 34 acute hospitals and day procedure centres that employ 7,300 people. This UK presence has been boosted with the strategic acquisition of leading mental healthcare provider, Elysium Healthcare, in December 2021. In Asia, Ramsay employs 4,000 people and operates three hospitals in Indonesia, three hospitals and a nursing college in Malaysia and one day surgery in Hong Kong. 

A$88 cash offer 

A Consortium led by New York based global investment bank Kohlberg Kravis Roberts & Co., (KKR) has offered A$88 a share to buy 100 percent of Ramsay under a Scheme of Arrangement. KKR is a major player in private equity buyouts around the world.

Ramsay was obliged to confirm the offer to the market today, following media speculation about the proposal. The offer, which has the support of Ramsay’s largest shareholder, the Ramsay Foundation, represents a 37 percent premium to the price where Ramsay shares last traded. Ramsay Foundation owns 20 percent of the Company. The offer places a value of A$20.1 billion on Ramsay. Directors have agreed to provide the Consortium with due diligence on a non-exclusive basis to enable a binding proposal to be brought before shareholders.

The Consortium has structured its proposal as Scheme of Arrangement (Scheme). A Scheme requires shareholder and Court approval and may take three months to implement. However, a Scheme provides all parties with certainty in that once approved, it is binding on all shareholders.    

Image: file

Next Step

The A$88 cash offer was expressed to be confidential, and the Consortium has the right to withdraw the proposal if it ceased to be confidential. This is unlikely to occur, because the Consortium has already secured board and key shareholder support at the agreed price.

KKR is a major player in buyouts around the world and through its private equity arm owns French private hospital group, Elsan. Twenty-eight thousand employees and 7,500 doctors service the needs of 2.2 million patients a year at Elsan. Ramsay’s significant European presence appears complementary to Elsan’s well established French business operation. This may partly explain why a Scheme has been proposed by the Consortium, because it can more efficiently respond to any regulatory scrutiny that may arise, given the likely dominance of the merged hospital owner and operator in Europe. The buy-out offer is also certain to attract the attention of the Foreign Investment Review Board here in Australia.    

The proposal has the support of the Ramsay board and the KKR led Consortium has the cash to complete the proposal. Once the necessary regulatory approvals have been secured, a binding proposal can be brought before shareholders and is likely to be approved.    

This Post Market Wrap is presented by Kodari Securities, written by Michael Kodari, CEO at KOSEC.

"Michael Kodari is one of the world's most consistent, top performing investor. A philanthropist and one of the prominent experts of the financial markets, he has been referred to as ‘the brightest 21st century entrepreneur in wealth management' by CNBC Asia and featured on Forbes. Featured on TV as the "Money Expert", on the weekly Sunday program "Elevator Pitch", he is recognised internationally by governments as he was the guest of honour for the event "Inside China's Future", chosen by the Chinese government from the funds management industry, attended by industry leaders, when they arrived in Sydney Australia, on April 2014. Michael and George Soros were the only two financiers in the world invited and chosen by the Chinese government to provide advice, and their expertise on Chinese government asset allocation offshore. With a strong background in funds management and stockbroking, Michael has worked with some of the most successful investors and consulted to leading financial institutions. He was the youngest person ever to appear on the expert panel for Fox, Sky News Business Channel at the age of 25 where he demonstrated his skillset across a 3 year period forming the most consistent track record and getting all his predictions right over that period. Michael writes for key financial publications, is regularly interviewed by various media and conducts conferences around the world."

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Unemployment in Australia rises to 4.3 percent in June

Australia’s unemployment rate rises to 4.3 per cent in June amid economic uncertainties and stagnant employment growth

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Australia’s unemployment rate rises to 4.3 per cent in June amid economic uncertainties and stagnant employment growth

In Short:
– Australia’s unemployment rate rose to 4.3% in June, with youth unemployment at a high of 10.4%.
– Economists disagree on the rise’s implications, citing various factors affecting the labour market.
Australia’s national unemployment rate rose to 4.3% in June, up from 4.1% in May.

The increase follows the Reserve Bank’s unexpected decision to hold interest rates steady, which some economists view as a misstep. Despite a slight employment gain of 2,000 jobs, the number of unemployed surged by 33,600, reflecting a growing labour force of 35,600 individuals.

Economic Challenges

Youth unemployment has reached 10.4%, the highest since November 2021. Federal Treasurer Jim Chalmers stated that the unemployment rise is a result of global economic uncertainty and rising interest rates.

While the unemployment rate is historically low, the participation rate remains near record levels.

Economists express varied opinions on the significance of the unemployment rise. Paula Gadsby from EY maintained that the labour market remains healthy.

Although Callam Pickering of Indeed suggested the RBA’s decision to maintain rates was misguided, he noted that job vacancies still indicate positive conditions. Betashares chief economist David Bassanese highlighted the potential for an interest rate cut next month if inflation remains stable.

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Investors rethink risk in uncertain markets

“Investors face ‘risk fatigue’ amid shrinking returns, currency shifts, and a fragile global outlook challenging traditional financial models.”

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“Investors face ‘risk fatigue’ amid shrinking returns, currency shifts, and a fragile global outlook challenging traditional financial models.”


Years of disruption have triggered ‘risk fatigue’, as investors navigate shrinking returns, shifting currencies, and a fragile global outlook.

The rise of alternative currencies and a weakened U.S. dollar position are challenging long-standing financial models.

#Markets #RiskFatigue #Investing #USD #GlobalEconomy #TickerNews

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No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet

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No more card surcharges: what the Reserve Bank’s proposed changes mean for your wallet

Angel Zhong, RMIT University

That extra 10c on your morning coffee. That $2 surcharge on your taxi ride. The sneaky 1.5% fee when you pay by card at your local restaurant. These could all soon be history.

The Reserve Bank of Australia (RBA) has proposed a sweeping reform: abolishing card payment surcharges. The central bank says it’s in the public interest to scrap the system and estimates consumers could collectively save $1.2 billion annually.

But like all major financial reforms, the devil is in the detail.

The 20-year experiment is over

Surcharging was introduced more than two decades ago to expose the true cost of different payment methods. In the early 2000s, card fees were high, cash was king, and surcharges helped nudge consumers toward lower-cost options.

But fast-forward to 2025, and the payments ecosystem has changed dramatically. Cash now accounts for just 13% of in-person transactions, and the shift to contactless payments, accelerated by the pandemic, has made cards the default for most Australians.

When there’s no real alternative, a surcharge becomes less a useful price signal and more a penalty for convenience.

After an eight month review, the bank’s Payments System Board has concluded the surcharge model no longer works in a predominantly cashless economy. The proposal now on the table is to phase out surcharges and instead push for simplified, all-inclusive pricing.

Who saves – and who pays?

At first glance, removing surcharges looks like a win for consumers. Every household could save about $60 per year, based on the RBA’s estimates. But payment costs don’t vanish – they shift.

This is where the Reserve Bank’s proposal is more sophisticated than it may appear. Alongside banning surcharges, it plans to lower interchange fees (the fees merchants pay to card networks like Visa and Mastercard) and introduce caps on international card transactions.

These changes aim to reduce the burden on merchants, which in turn limits the pressure to raise prices.

Could prices still rise?

Some worry that without surcharges, businesses will simply embed the costs into product prices. That’s possible. However, the bank estimates this would result in only a 0.1 percentage point increase in consumer prices overall.

There are three reasons for that:

  1. most merchants already don’t surcharge, especially small businesses. Of them, 90% may have included card costs in their pricing
  2. competition keeps pricing in check. Retailers in competitive markets can’t raise prices without risking customers
  3. transparency is coming. The reforms will require payment providers to disclose fees more clearly, allowing merchants to compare and switch – fostering more competition and lower costs.

That said, the effects won’t be felt evenly. Merchants in sectors that do currently surcharge, like hospitality, transport, and tourism, will need to rethink their pricing strategies. Some may absorb costs; others may pass them on.

The winners

Consumers stand to benefit most. They’ll avoid surprise fees at checkout, won’t need to switch payment methods to dodge surcharges, and won’t have to report excessive fees to the Australian Consumer and Competition Commission. Combined with lower interchange fees, this means consumers should face less friction and more predictable pricing.

About 90% of small businesses don’t currently surcharge and would gain around $185 million in net benefits. These businesses often pay higher interchange fees, so the reform will reduce their costs. New transparency requirements will also make it easier to find better deals from payment service providers (PSPs).

Large businesses already receive lower domestic interchange rates, but they’ll benefit from new caps on foreign-issued card transactions, which is a win for those in e-commerce and tourism.

The losers

Banks that issue cards stand to lose about $900 million in interchange revenue under the preferred reform package. Some may respond by raising cardholder fees or cutting rewards, especially on premium credit cards. But they may also gain from increased credit card use as surcharges disappear.

The 10% of small and 12% of large merchants who currently surcharge will have to adjust. They may face retraining costs and need to revise their pricing strategies.
Most will be able to adapt, but the transition won’t be cost-free.

Payment service providers will face about $25 million in compliance costs to remove surcharges and provide clearer fee breakdowns. For some, this may involve significant system changes, though one-off in nature.

Will it work?

The Reserve Bank’s proposal tackles real problems: an outdated surcharge model, opaque pricing by payment service providers, and bundling of unrelated services into payment fees. Its success depends on how well these reforms are implemented and whether they deliver real price transparency and lower costs.

Removing visible price signals may create cross-subsidisation, where users of low-cost debit cards subsidise those who use high-cost rewards credit cards. Some economists argue this could reduce overall efficiency in the system.

International experience offers mixed lessons. While the European Union and United Kingdom banned most surcharges years ago, outcomes have varied depending on market conditions. Efficiency gains haven’t always followed, and small business concerns persist.

The road ahead

The Reserve Bank is seeking feedback until August 26, with a final decision due by year-end. If adopted, the reform will be phased in, allowing time for businesses to adapt.

For consumers, this may mark the end of hidden payment fees. But for the broader system, success will depend on more than just eliminating surcharges. It will require meaningful competition, transparency, and vigilance during the transition.

While not a major omission, mobile wallets (such as Apple Pay) and Buy Now, Pay Later (BNPL) services represent a missing component in the broader payments ecosystem that the current reforms do not yet address.

These platforms operate outside the traditional regulatory framework, often imposing higher merchant fees and lacking the transparency applied to card networks.

Their growing popularity, especially among younger consumers, means they increasingly shape payment behaviour and merchant cost structures. To build a truly future-ready and equitable payments system, these emerging models may need to be brought into the regulatory fold.The Conversation

Angel Zhong, Professor of Finance, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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