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Ramsay Health Care (ASX:RHC) - CEO & Managing Director, Craig McNally - The Market Herald
CEO & Managing Director, Craig McNally
Source: The Australian
  • Ramsay Health Care (RHC) has announced the completion of its $300 million share purchase plan
  • This share purchase plan received strong interest, with $695 million worth of applications received
  • Due to this strong interest, shareholders will be allocated a number of shares equal to 32 per cent of shares held on the record date
  • The company will use this money, and $1.2 billion from a placement, to repay debt facilities, strengthen its balance sheet, and increase financial flexibility
  • RHC is up a slight 3.43 and shares are trading for $68.99 each

Ramsay Health Care (RHC) has announced the completion of its $300 million share purchase plan.

A total of 5.37 million shares are expected to be issued to eligible shareholders at a price of $56 per share.

The share purchase plan was open to 80,273 eligible shareholders, and $695 million worth of applications were received from 41,877 shareholders.

Together, these shareholders subscribed for an average of $16,596 worth of shares.

Given the strong support received, RHC Directors increased the size of the share purchase plan from the initial $200 million to $300 million.

Due to the number of applications received, shareholders will be allocated a number of shares equal to 32 per cent of shares held on the record date, which has been labelled the pro-rata amount.

This is subject to a number of conditions, including that no less than 10 SPP shares (equal to $500) and no more than 535 share purchase plan shares ($30,000) can be issued to each investor.

Additionally, if a shareholder applied for fewer shares than allocated under their pro-rata amount, then they'll receive the number of shares they applied for.

These new shares will be issued on May 27 and can begin trading on the ASX on May 28.

Through this share purchase plan and already completed $1.2 billion placement, RHC now has $1.5 billion which it will use to partially repay certain debt facilities.

"We are pleased with the interest shown in this share purchase plan," CEO and Managing Director Craig McNally said.

"Together with our previous $1200 million institutional placement, the share purchase plan is designed to strengthen Ramsay's balance sheet and increase financial flexibility in an uncertain operating environment and position Ramsay to take advantage of future growth opportunities," he added.

RHC is up a slight 3.43 and shares are trading for $68.99 each at 12:31 pm AEST.


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